Payday loan firm suddenly halts B.C. operations
A payday loan firm suddenly closed all of its Canadian offices Friday following allegations that the company broke B.C.'s payday lending laws.
Consumer Protection BC said it is pursuing an investigation into the business practices of National Cash Advance, which operates six locations in British Columbia.
Spokesperson Manjit Bains told CTV's Steele on Your Side they received a complaint from a consumer who said the lender took too much money out of her account as a repayment on her loan.
The company has voluntarily surrendered its payday lending licences, Bains added.
"NCA says it will work with consumers to resolve any outstanding issues however we are encouraging consumers to contact us directly should there be any issues that are not resolved," she said.
All B.C. branches of the lending firm are expected to close their doors by Friday night.
An employee who answered the phone at one Burnaby location said staff were only informed this morning that the branch was closing down.
A message on the company's website Friday advised customers that all Canadian operations had ceased.
Payday lenders are required to be licensed with Consumer Protection BC under provincial law. There are more than 300 licensed such lenders in the province.
Under payday loan laws enacted in 2009, lenders are restricted from unfair practices such as collecting a repayment from an employer or getting unrestricted access to your bank account. Lenders cannot charge more than 23 per cent of the amount borrowed.
National Cash Advance has six offices in Abbotsford, Burnaby, Maple Ridge, Mission and Surrey.
If consumers have any questions or concerns, they should contact the company directly by calling: Jose Gonzalez National Cash Advance Phone: (864) 342-5702
If consumers are unsuccessful in resolving issues with National Cash Advance, please contact Consumer Protection BC toll free at 1-888-564-9963 or firstname.lastname@example.org.
Watch CTV News tonight for more news about this payday loan shutdown...