Cash Store, a payday lender, has ceased lending after administrators were appointed on Friday.Cash Store Australia Holdings, a Toronto-listed firm, said it had appointed a voluntary administrator to its wholly owned subsidiary, Cash Store Pty Ltd, on the grounds it was "insolvent or is likely to become insolvent at some future time."Hugh Armenis and Kate Barnet, of Bentley Corporate Recovery in Brisbane, are the administrators.Cash Store said that in September it "received a letter from its third party lender's counsel giving notice that it is suspending its consent to allow [Cash Store] to broker any further loans to customers."Cash Store said it had "complied with this request by suspending all broker activities."Two weeks ago, Cash Store said its operating subsidiary would not be able to make payments to the lender because the company had been unable to raise the necessary fundingTom Denovan, the chief executive of the company, also resigned last week.On September 6, the Australian Securities and Investments Commission said it had launched legal proceedings against lending businesses operated by Cash Store Australia Holdings, seeking financial penalties for breaches of the consumer credit law. In proceedings filed in the Federal Court, ASIC claimed that Cash Store had breached its responsible lending obligations and engaged in unconscionable conduct. ASIC claimed that Cash Store and an associated company, Assistive Finance Australia, had provided unaffordable loans to a large number of customers who were on low incomes or were recipients of Centrelink benefits. It also claimed that Cash Store sold insurance in relation to these loans when it was unlikely the customers would ever be in a position to make a claim on that insurance.