The province is introducing new rules for those issuing payday loans. (File photo)

B.C. introducing stricter payday-lending law

The new rules go into effect September 1

The B.C. government is rolling out a new set of rules designed to protect individuals from exorbitantly high fees when cashing their BC Employment and Assistance cheques.

READ MORE: B.C. man says his life was ruined by predatory lending

“Our government is working to provide opportunities to help lift people out of poverty,” said Shane Simpson, minister of social development and poverty reduction. “Today’s announcement will ensure people, who are receiving income and disability assistance, and who rely on these services, are protected from unscrupulous practices, and have more money left in their pocket after they cash their cheque.”

The new rules and limits will be enforced beginning Sept. 1, and include protections such as lowering the maximum fee to $15 from $17 for every $100 borrowed, extending the payday-loan agreement cancellation period to two full business days, forbidding a payday lender requiring consent from a borrower to use or disclose their personal information for anything other than providing a payday loan, clarifying payday lenders’ data-reporting timelines, and capping the fee for cashing a provincial social assistance or disability cheque at $2 plus 1 per cent of the cheque’s value up to a maximum fee of $10.

In 2016, more than 160,000 British Columbians borrowed more than $369 million in payday loans, which equals approximately $460 per day on average. Rob Gialloreto, president and CEO of Consumer Protection BC, said that number was approaching $400 million a year.

“We support efforts of this nature by the province that are designed to protect vulnerable consumers who use the services of any high-cost lender,” he said.

The province has also launched a new website designed to help inform people before they take out any kind of loan. It includes facts about credit products and services, borrowers rights and where they can go for assistance if required.



newsroom@thenorthernview.com

Like us on Facebook and follow us on Twitter

Just Posted

Pulled cattle guards going back in place despite B.C. Interior First Nations moose hunt protest

Forests minister Donaldson and TNG Chief Alphonse discuss situation, agree on path forward, ministry says

UBCM passes historic resolution brought forth by CCRD

If the resolution is successfully realized, it will mean groundbreaking change for local governments

TNG block roads, question gov’t on moose hunt

Chief Joe Alphonse confirmed Thursday they’ve deactivated the Raven Lake Road and the Mackin Creek Road just before the Island Lake turnoff

Bella Coola RCMP appeal for public’s help in wake of suspicious fires

Four suspicious fires in the span of four months prompted local RCMP to bring in fire specialist

Municipal spending outpaces population growth 4-fold in B.C.: report

Canadian Federation of Independent Business has released its annual operational spending report

Environment Canada confirms Ottawa area hit by two tornadoes Friday

At one point more than 200,000 hydro customers were blacked out

Whitecaps see playoff dreams fade after 2-1 loss to FC Dallas

Goal in 87th minute seals Vancouver’s fate

B.C. students send books to displaced students of Hornby Island school fire

Maple Ridge elementary school teacher says students learned about acts of kindness

Trump drains oxygen from Trudeau foreign policy with PM, Freeland bound for UN

A lot has changed since the Liberals came to power in Canada in 2015

B.C. man fined $15,000, barred from trading securities for fraud

Larry Keith Davis used money from an investor to pay personal bills

Emergency crews investigate small sulphuric acid spill in Kootenays

IRM states a small volume of less than one cup and three dime-sized drips were leaked from carrier

Family, friends of B.C murder victim want killer sent back to max security facility

Group wants convicted murderer Walter Ramsay sent back to a maximum security facility

Most Read