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

Lake Country approved rules for pot shops

District ready to deal with retail applications once pot becomes legal in Canada Oct. 17

Kelowna mayoral candidate’s sign set aflame

Bobby Kennedy’s sign was set on fire on Saturday morning

PHOTOS: Vernon Minor Football full of family fun

Three games against Kelowna Junior Sun Sunday, Sept. 23

Long awaited second power line in West Kelowna postponed

The power line was set to be completed in 2020 and will now be installed in 2025

Sunshine ahead for Kelowna

Your weekly forecast shows that the sun will shine again on Tuesday

Meet the Chef: Kai Koroll, executive chef at Block One restaurant

Koroll honours the terroir of the Okanagan in every dish he serves

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

Trans Canada now open west of Chase, ‘heavy delays’

Few details available about crash that closed Trans Canada Highway west of Chase Sunday, Sept. 23

Oliver to get new sheriff from graduating class

Oliver will be one of a number of B.C. communities to get a member of the recent graduating class

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

Most Read