A Regina-based loan broker said to have a high proportion of farmers as clients, has been ordered to stop acting as a loan broker by the Saskatchewan government.
Second Chance Loan Referral Services, owned by Nicole and Steve Conant, failed to get proper registration required under a new law that came into effect Sept. 1.
Saskatchewan’s superintendent of financial institutions issued a temporary cease-and-desist order to the company in September.
Jim Hall extended the order in October because the company was not registered under The Trust and Loan Corporations Act.
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Under the new act, loan brokers in Saskatchewan must register with the government and file a bond.
Loan brokers shop around customers’ loan applications to lenders to help them get financing. In Sask-atchewan and Alberta, loan brokers are not allowed to charge fees to consumers before they receive a loan
Call for help
Consumers who paid an advance fee to a loan broker after Aug. 31, 1999 can contact the Consumer Protection Branch at 888-374-4636.
The Regina Police Service investigated the company’s business practices after complaints about advance fees it allegedly charged to loan applicants, including a $10,000 fee charged to a farmer.
