Canadian lender Cash Today under scrutiny as 44,000 loans vanish

Skip to Content News Archives Economy Defence Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Defence Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Defence Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeFinanceBankingCanadian lender Cash Today under scrutiny as 44,000 loans vanishCash Today told the receiver it had no bank accounts in its own nameAuthor of the article:Last updated 0 minutes ago Edmonton, Alberta-based Cash Today Inc. reported more than 44,000 outstanding loans totaling about $229 million at the end of last year. Photo by David BloomA Canadian consumer lender has left creditors with potential claims of more than $613 million, while a court-appointed receiver struggles to account for the firms’ loans and determine how investor money was used.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountEdmonton, Alberta-based Cash Today Inc. reported more than 44,000 outstanding loans totaling about $229 million at the end of last year. But when receiver MNP Ltd. inspected the company’s offices last month, it found records of just 256 active loans worth less than $900,000, according to a document filed in the Court of King’s Bench of Alberta on Tuesday.This advertisement has not loaded yet, but your article continues below.The receiver identified about 270 creditors and debenture holders. But MNP cautioned that the $613 million in claims may be overstated by at least $190 million, adding that it still can’t determine the full extent of Cash Today’s assets and debts.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThe struggles of Cash Today offers a window into the risks lurking in Canada’s lightly regulated lending industry.The investigation has also prompted questions about how Cash Today handled money raised from investors. Some of its debt agreements required the proceeds be kept in separate bank accounts until they were used to buy loan portfolios. But several investors provided records showing their money had been sent to a bank account belonging to a related company instead, according to the document.Cash Today told the receiver it had no bank accounts in its own name, a statement confirmed by bank records. MNP said it couldn’t establish whether the investor funds had been used as required under the agreements.Cash Today, founded in 2005, provided high-cost consumer loans from locations in Edmonton and Red Deer, Alberta. It was controlled through companies associated with Grant Patterson and Cameron Schiffner, who also served as directors of several other lending businesses. The company didn’t immediately reply to a request for comment.This advertisement has not loaded yet, but your article continues below.Patterson died the week of Sept. 21, according to information MNP received from the company’s former lawyers. Schiffner resigned as a director effective Oct. 1, leaving the company’s operations in what the receiver described as a state of limbo.The receiver said its efforts to obtain more information have been complicated by Cash Today’s management. Its representatives declined requests for in-person and virtual meetings, preferring to answer questions in writing through lawyers, who subsequently withdrew from the case, according to the report.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.