Rentcash Inc. Applauds Expert's View on Price Caps

Rentcash Inc. ("Rentcash") (TSX:RCS) today applauded commentary by Roy Griffaw, an established observer of the alternative finance market in North America and editor of RTOonline, and online publication that closely tracks the payday loan industry in Canada and the U.S.

Mr. Griffaw criticized recent actions by the Canadian Payday Loan Association (CPLA), which is seeking price caps for payday loans from regulators that will restrict market entry and destroy many independents currently in the market.

Denouncing the association as a "Co-op" representing the interests of only 40 percent of the market, Griffaw concludes that the association has lost sight of its mandate to protect the interests of the industry.

He writes: "The association's tactics are explanation enough as to why membership in the CPLA has dropped by half. The CPLA has abandoned a position as legitimate industry representative..."

Mr. Griffaw's commentary is reproduced in full below. An original can be obtained by visiting: www.rtoonline.com/Content/Article/Jan07/CPLAEditorial012007.asp

Editorial

By Roy Griffaw, Publisher, RTO Online

"Most disturbingly, the association also strongly implied that any

company that has chosen not to join the association has done so because

of a purposeful intent to "prey" upon consumers."

The Canadian Payday Loan Association's (CPLA) recent press release

calling on Canadian governments to regulate out of existence 60 percent

of Canada's payday loan industry sets a disturbing precedent. The CPLA's

position should be cause for concern for any Payday Loan operator with an

interest in penetrating the Canadian market. Canadian independents should

also watch their backs.

The CPLA's press release clearly called for price controls that could

force some independents out of the market and restrict market entry. Most

disturbingly, the association also strongly implied that any company that

has chosen not to join the association has done so because of a

purposeful intent to "prey" upon consumers. On a side note, A just

published study by the Federal Reserve Bank of New York, concluded that

payday loans are not a "welfare reducing" form of credit. To the

contrary, the author suggests that payday lenders enhance the welfare of

households by increasing the supply of credit. It's quite ironic that the

CPLA claims Payday Lenders are predatory the same week the Fed says they

are not.

Many readers of this publication are independent operators who recognize

that taking care of their customers is the best way - the only way - to

earn a living. If you treat your customers poorly, they won't come back.

Anyone active in the industry knows that there are two elements to the

regulatory equation: consumer protection and price restrictions. From an

economic perspective, the two are not linked. Good economic policy is

predicated on the principal that markets should be left to operate

freely. Setting price caps only guarantees that all companies will charge

the maximum rate without fear of competition. This has been the case in

every U.S. State that regulates Payday Loan fees. Governments should

intervene only when there is an unfair imbalance favoring one market

participant over another.

On the consumer protection front this means operators should clearly

disclose to their customers what it cost to do a transaction. If

everything is open and transparent, there is no need for price controls.

If a customer knows what they are getting into from the get go - and the

government puts in rules to make sure this is so - why implement price

caps?

Either you believe in free market principles, or you don't. Clearly the

leadership of the CPLA does not.

The biggest issue facing the payday loan industry in any country is bad

press. The primary goal of any legitimate Association is to shape public

perceptions. Publicly accusing the majority of the Canadian payday loan

industry of being "predatory" is evidence the CPLA has lost site of its

mandate.

The association's tactics are explanation enough as to why membership in

the CPLA has dropped by half. The CPLA has abandoned a position as

legitimate industry representative and taken up the role of Co-op.

About Rentcash

Rentcash is the only payday advance broker in Canada publicly traded on the Toronto Stock Exchange (TSX:RCS). Rentcash operates more than 427 stores across Canada under three banners: The Cash Store, Instaloans and Insta-rent.

The Cash Store and Instaloans act as brokers to facilitate payday advance services to income-earning consumers and provide two private-label debit cards, The Cash Store Cash Card(TM) and InstaWorld Debit Card, to those who may not be able to obtain them from traditional banks.

Insta-rent rents brand-name furniture, appliances, electronics and computers, with or without an option to purchase. Insta-rent operates primarily in The Brick and United Furniture Warehouse locations, which are part of The Brick Group, one of Canada's largest volume retailers of household furniture, mattresses, appliances and home electronics.

Rentcash employs more than 1,800 associates and is headquartered in Edmonton, Alberta.

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For further information: Michael J.L. Thompson, Vice President Investor Relations & Government Affairs, (780) 408-5595, Cell: (613) 371-4093

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