Payday lender ordered to refund thousands of customers after B.C. investigation

A payday loan outlet on Rideau St. in Ottawa. (Ted Raymond / CFRA)

Thousands of British Columbians are entitled to refunds following an investigation by the province’s consumer protection regulator into a payday loan company’s lending practices.

Consumer Protection BC says payday lender Cash Money, which operates 25 locations across the province, has agreed to refund $547,000 to more than 2,800 borrowers as a result of the investigation.

The regulator says Cash Money violated consumer protection laws in its loan agreements by asking for payment before the borrowers had received the money from their employers or other sources.

In some cases, the company gave its customers a shorter timeframe to pay back their loans than is required under the law, the regulator said in a statement Monday.

Other payday lenders investigated

Cash Money has entered an agreement with Consumer Protection BC to correct its contracts.

Earlier this month, the company began mailing refund cheques for more than 5,600 non-compliant payday loans that were issued between June 1, 2023, and July 20, 2025.

“Consumer Protection BC is inspecting other payday lenders for similar violations,” the statement said.

Payday loans are short-term loans of up to $1,500 which are intended to be repaid once someone receives their paycheque or funds from another source. Consumer Protection BC says the loans come with “high fees that make it an expensive way to borrow money.”

Under Canadian law, a payday lender cannot charge more than $14 in interest and fees per $100 borrowed. The limit was lowered on Jan. 1 from the previous maximum of $15.

“We often see under-resourced consumers using these loans because they don’t require a credit check,” said Louise Hartland, spokesperson for the regulator, in the statement.

“Unfortunately, a lot of people get caught up in a dangerous borrowing cycle and find themselves going deeper and deeper into debt.”

Consumer Protection BC says payday borrowing is on the rise in the province.

“Last year alone, 122,901 people took out a payday loan, borrowing approximately $364 million,” Hartland said. “That’s an increase of 11 per cent since 2023.”

Consumer Protection BC, which regulates consumer transactions in the province, says payday loans cannot be issued for amounts higher than 50 per cent of the borrower’s paycheque.

The regulator urges anyone who believes they may be eligible for a refund from Cash Money to contact the company at 1-877-526-6639 or [e-mail].