Payday lenders have proliferated in urban areas

B.C. lowers cap on payday loan fees

Fee for short-term borrowing lowered to $17 per $100, a rate Public Safety Minister Mike Morris says is second lowest in Canada

New B.C. regulations have lowered the limit on payday loan charges to $17 per every $100 borrowed.

Regulations that took effect Jan. 1 lower the maximum charge from $23, including all fees. The regulation covers short-term loans up to $1,500 for a term of 62 days or less.

The B.C. government began tightening regulations on payday lenders in 2009, when they limited charges to 23 per cent of the loan, and required lenders to post signs reminding customers they were paying an annualized interest rate of up to 600 per cent.

Public Safety Minister Mike Morris said the new 17 per cent rate is the second lowest in Canada.

The industry reported to B.C. regulators that 159,000 payday loans were taken out in 2015. Most borrowers hand over a cheque or a pre-authorized debit for the full amount of the loan, plus fees, to be paid from their next paycheque.

Scott Hannah, president of B.C.’s Credit Counselling Society, said the reduced fee is a step in the right direction at a time when consumer debt levels are at record levels.

Payday lenders are restricted to disclose all charges, and loans are limited to half of the borrower’s net pay during the period of the loan. Details of consumer protections in B.C. can be found here.

 

Just Posted

O’Reilly trial scheduled to start January 15 for Anahim Lake murders

O’Reilly is charged with first-degree murder

School District 49 to re-open Nusatsum Elementary in September 2018

SD49 says increasing enrollment is driving its decision to re-open the school

Red Cross funding available to local residents of Bella Coola and Hagensborg

The Red Cross is administering up to $900 in initial funding to help assist Bella Coola Valley residents

B.C. boy denied $19,000-per-month drug to ease ‘crippling pain’ for 3rd time

Sooke mom Jillian Lanthier says son Landen Alexa has been forgotten about by Premier John Horgan

Kids chained in Calif. house of horrors; parents arrested

Authorities say an emaciated teenager led deputies to home where her 12 brothers and sisters were locked up in filthy conditions

‘Reprehensible’: Trudeau abortion policy raises ire of U.S. right

“This man is reprehensible,” tweeted former White House staffer Sebastian Gorka

‘I shouldn’t have to have a husband:’ Winnipeg woman criticizes men-only club

Jodi Moskal discovered the Winnipeg Squash Racquet Club continues to ban women as members, as it has done since opening in 1909.

Japan public TV sends mistaken North Korean missile alert

The false alarm came two days after Hawaii’s emergency management department sent a mistaken warning

Toronto girl dies after being pinned between vehicles while picked up from school

Police say an SUV with no driver in it rolled forward and pinned the girl against her father’s car

Senior randomly stabbed in B.C. mall food court

Woman arrested after victim, 71, suffers serious injuries

B.C. Liberal hopefuls begin final leadership push

Five MLAs, one outsider pitch policies to party members

Vancouver Island marijuana producer bought by Aphria in $230M deal

Aphria’s annual production forecast increases to 230,000 kgs

Most Read