Beware: Money Mart Gift Card Redemption

Beware: Money Mart Gift Card Redemption

Postby CLS » Mon Dec 08, 2014 7:35 pm

Consumers and advocates should be alert to a new variation on predatory lending and cheque-cashing fees: Money Mart locations in Hamilton and Niagara have begun redeeming gift cards from cash-strapped consumers for a 50% fee. That means if you redeem a $50 gift card, you get $25 and Money Mart keeps the other $25 as its redemption fee. The Ontario Ministry of Consumer Services is looking into the practice, but admits that it is having difficulty keeping up with the creative ways in which the pay day lending industry tries to get around the provisions and fee limitations of the Pay Day Loans Act. More information about the new Money Mart "service" can be found in a recent article in the Toronto Star at http://www.thestar.com/news/queenspark/2014/12/04/money_mart_blasted_by_ndp_for_50_gift_card_fee.html.
Kathryn M. Bullon, B.Sc., J.D., M.Ad.Ed.
Legal Education Co-Coordinator
Community Law School
CLS
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