Terms of Service

Last Updated:
March 21, 2024

Product Overview

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In-branch, customers can apply for either the Flex or Short-term Loan offering and add-on features to meet the individual's financial needs.
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Payday Loans
As a general rule, clients can borrow up to $1500 of their verified net income. The repayment terms are based on the client's pay frequency and the granted PDL’s are to be paid in full on the client’s next payday. Payday lenders cannot rollover a payday loan or issue any other credit to a borrower with an outstanding payday loan. There are regulatory nuances which differ by province that affect the general rule as follows:‍

‍British Columbia PDL

    • A payday loan is an unsecured loan of $1,500 or less with a term of 62 days or less.
    • A PDL cannot exceed 50% of the clients take home pay.
    • A maximum interest rate of 2.5% per month (non-compounding) is charged on the outstanding principal of a payday loan in default, providing relief to borrowers who are unable to repay their loans on time.
    • A one-time fee of $20 is applied for a dishonoured cheque or pre-authorized debit.
    • PDL can be cancelled and repaid, without penalty, within two full business days after getting the loan. “Right to Rescind”
    • Repay any amount of the payday loan early, before it is due, without penalty.
    • Fee of $14 per $100 borrowed. A company’s fees must be publicly displayed wherever a payday loan is offered.
    • Issue a borrower more than one payday loan at a time.
    • Roll over an existing payday loan into a new one with charges.
    • Require or request that you buy insurance or insure the payday loan.
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    British Columbia Extended Payment Plan

    A payday lender who enters into a third or subsequent payday loan agreement with a borrower in a 62-day period must meet the following conditions:

    (a) if the borrower is paid or otherwise receives income on a bi-weekly, semi-monthly, or more frequent basis, the loan agreement must denote that repayment is to be spread over a minimum of 3 pay periods, or

    (b) if the borrower is paid or otherwise receives income on a less frequent basis than referred to in paragraph (a), the loan agreement must denote that repayment is to be spread over at least 2 pay periods.‍

      New Customer Creation

      For our products, the process below is required for new customer applications. Customer information is meant to satisfy customer stability, confirm identity and ensure their ability/willingness to repay.

      1. Minimum Requirements
        • Over the age of 18
        • Canadian Resident
      2. Complete Client ID Information
        • Government issued photo identification
        • Legal Name
        • Phone Number
        • Email Address
        • Residential Address
        • Income & Employment Information
        • Credit Check (for Flex Products)
      3. Financial Health Questionnaire
      4. Complete Phone Verification
        • Phone Verification is required for all clients.
        • Employees are required to call the number provided by the client during the loan application. Prior to calling the number, employees must instruct the client to not answer the call to ensure the number is not from a temporary app.
        • If the phone number is validated when you call it, proceed to the phone number verification in FSL. The client will receive a verification code to their phone number, at which time the employee must ask the client for the code and enter it into the verification field in FSL.
      5. Update Income & Banking Information
        • Using Flinks, a third-party account linking service, the employee will validate customer income, pay frequency and banking information.
        • If bank account linking is unavailable (or in Saskatchewan), employees must retain a copy of the client’s most recent bank statement with proof of employment income
      6. Discuss Loan Options with Clients
      7. Confirm Decision Engine Approval
        • Employees must run a decision engine query to determine loan maximum and term amounts.
        • Decision override: If employees are not comfortable with the decision, they will be required to contact their Regional Manager or Operations Manager to review an alternative and to override the decision.
      8. Review Funding Options with Clients
      9. Sign Documents
      10. Fund Loan
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      Collections & Recovery

      Cashco understands that when it comes to its products or services, timely and comprehensive support is crucial for clients facing delinquency.

      Collections is a joint responsibility of both in-branch staff and a dedicated, centralized client retention team (after 90 days for flex loans and 45 days for short-term loans).

      Proactive Communications

      Branch managers and associates proactively call customers in the days leading up to a payment as a reminder that a draw from the client’s bank account is upcoming.

      Recoveries/Delinquencies

      Once a client is late (between 1-45 days for PDL), the branch team sends communications to attempt a recovery of the delinquent loan.

      · Determine the lateness of the loan and send "Past Due" emails accordingly.

      · Set up recovery EFT in accordance with provincial laws for where the loan was written.

      · If the recovery EFT is not successful, the employee will contact the customer again. If the client is reached, the employee will ask them for immediate payment including late fees. Detailed notes of all calls/texts/emails are kept. If the client is not reached, two more attempts are made, and a voicemail is left on the final call. This is repeated until a promise-to-pay is reached or the file is transferred to collections.

      Collections

      PDL loans that are 46 days past due roll into collections. These loans are assigned to a Collections Manager where a process of collections is initiated:

      • A Cashco past-due document is auto-generated with a click of a button. This is the first line of communication between a collector and the client.
      • The collector attempts to contact the client. Three communication channels are attempted: Phone call, SMS, and email. A record of this communication is kept at this stage for follow-up, audit, etc.
      • When a collector gets a client on the phone in real time, they ensure that they get a promise-to-pay (PTP) commitment. The client provides a date in the future they will be making a full payment for the loan.

      The collections team flags customers that have the ability but refuse to pay at which point Cashco’s in-house legal team will pursue legal action.
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      Handling Bankruptcy Accounts (Abeyance)

      When a client contacts the branch, by phone, SMS or email to notify employees that they have signed up for Credit Counseling, Consumer Proposal, Bankruptcy or Debt Management, or if a stakeholder informs an employee that the client is deceased, details about the client and their loan will be forwarded to the Abeyance Team. We may also become aware of a customer’s status if we receive Debt Management Proposal (DMP) or Money Mentors Orderly Payment of Debt (OPD) documents via email or fax on behalf of an agency.

      Upon confirmation of the client being in Abeyance status, their account will be locked and they will not be able to access further funds. Completion of the Abeyance form will initiate this status, and adjust the product:

      • For Payday Loans, we drop the Interest to 0%, and the Company gets 10%.
      • The exception is Money Mentors. For Money Mentors we can add up to thirty days (about four and a half weeks) interest on the Flex Loan only. You will need to calculate the value of the interest to be added based on the principle owing on that day.

      All communications and legal documentation in regards to the client’s file must be stored.
      Payments received will be processed within FSL by the Abeyance team.