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

Seaton Sonics host Valley volleyball finals

Sonics, Vernon Panthers and two squads from Kamloops look for berths to B.C. finals

Vernon Panthers ready for Ballenas

Subway Bowl BC AA High School Senior Varsity Football Friday, 7 p.m., Greater Vernon Athletic Park

Winter months mean more calls for Vernon’s crisis line

According to CMHA B.C., seasonal depression makes about 10 per cent of all depression cases.

Vernon taekwon-do athletes succeed at Nationals

Sundance Taekwon-do brought home five gold, seven silver and 15 bronze medals at National Championships and Team Selections at the Genesis Centre in Calgary last weekend.

Victoria awards North Okanagan communities cash

Vernon, Lumby receive provincial funds in lieu of property taxes

Fashion Fridays: 5 coats you need this winter!

Kim XO, lets you know the best online shopping tips during Fashion Fridays on the Black Press Media Network

Kal Rotary fundraiser leads to wheelchair van purchase

The $39,000 awarded by Kalamalka Rotary was instrumental in securing the $56,000 needed.

California wildfire death toll hits 63

Sheriff says hundreds still missing in nation’s deadliest wildfire

Harsh storms have nearly tripled power outages in last five years, BC Hydro says

More frequent and severe storms have damaged Hydro’s electrical systems since 2013

Truck smashes into multiple parked vehicles in Kelowna

The driver of a truck was taken to hospital with undetermined injuries

Trudeau to meet key Pacific trade partners at APEC leaders’ summit

Canada became one of the first six countries to ratify the CPTPP

Judge orders White House to return press pass to CNN’s Acosta

U.S. District Court Judge will decide on White House press credentials of CNN reporter Jim Acosta

WikiLeaks chief could see charges, US court filing suggests

Charges against Julian Assange could help illuminate the question of whether Russia co-ordinated with the Trump campaign

Federal MPs denounce controversial Facebook post targeting Sajjan

Okanagan Conservatives apologize for controversial Facebook post

Most Read