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

Highlights and winners from the Binche Fishing Derby

The third annual event was a massive succes

Buy BC relaunches to keep business local

Local farmers’ markets may benefit

Province expands program to keep youth away from gang life

The Government of British Columbia is providing $1.12 million in additional funding… Continue reading

Applications for high-speed internet in rural communities being accepted

According to a news release that was issued by the Ministry of… Continue reading

France doubles up Croatia 4-2 to win World Cup

Played in Moscow Russia, latest Fifa World Cup marks the highest scoring final since 1966

Trudeau asks transport minister to tackle Greyhound’s western pullout

Prime Minister Justin Trudeau says he’s asked Transport Minister Marc Garneau to find solutions in Greyhound Canada’s absence.

VIDEO: Life’s a beach at this B.C. sand sculpting contest

More than $50,000 was up for grabs at the annual contest held in Parksville

Group urges Canada to help Holocaust denier on trial in Germany

They’re concerned about Canada’s apparent unwillingness to come to the aid of Monika Schaefer

RCMP seek person of interest after elderly man left with ‘life altering’ injuries

Burnaby RCMP believe a male teen is a ‘person of interest’ in the case

MGM sues Vegas mass shooting victims, argues it isn’t liable

The company argues it has “no liability of any kind” to survivors or families of slain victims

Vancouver police propose policy for victims, witnesses who are undocumented immigrants

If approved, officers will not ask about an immigration status, unless needed

Crashes reach ‘all-time high’ across B.C.: ICBC

Auto insurer recorded more than 350,000 crashes in 2017

Pressure on for ride hailing, bus options in B.C.

Premiers to press Ottawa for help replacing Greyhound service

Usain Bolt to make run at pro soccer in Australia

Olympic sprint great has long expressed his love of the game

Most Read