Payday lender to refund $547K for alleged law violations

A payday lender with branches across B.C. has agreed to refund $547,000 to about 2,800 customers, following an investigation into alleged consumer protection law violations.

Consumer Protection B.C., which regulates the payday-lending industry, said in a statement that Cash Money allegedly broke the law in its loan agreements.

The agreements, it explained, asked for payment before a borrower got their income from work or other sources and sometimes gave borrowers less time than legally required to pay back their loans.

The regulator said Cash Money entered into an agreement to fix the contracts and has issued refund cheques for over 5,600 “non-compliant payday loans” issued between June 1, 2023, and July 20, 2025.

A spokesperson for Consumer Protection B.C. said the cheques should be in the hands of consumers now. Some people, like those who have changed addresses, may need to follow up with the lender.

Other lenders under scrutiny

The regulator says it is “inspecting other payday lenders for similar violations.”

It notes that in B.C., a payday loan can be up to $1,500. It is a short-term option with high fees and lenders can charge up to $14 for every $100 borrowed, including all interest and fees.

“We often see under-resourced consumers using these loans because they don’t require a credit check. Unfortunately, a lot of people get caught up in a dangerous borrowing cycle and find themselves going deeper and deeper into debt,” spokesperson Louise Hartland said in the statement.

“We are seeing more people who live in B.C. taking out these loans. Last year alone 122,901 people took out a payday loan, borrowing approximately $364 million. That’s an increase of 11 [per cent] since 2023.”

CBC News has requested an interview with Cash Money, but the company had not responded at time of publication.