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

PHOTO GALLERY: Malicous Monster Truck Tour

The Malicious Monster Truck Tour sold out to crowds of 2,500 people… Continue reading

CMTN First Nations Fine Arts program offers new advanced diploma

The 10-month program will focus on enhancing jewellery, sculpture and marketing skills

Terrace spawns new salmon art festival

This week’s featured artist: Casey Braam

Back in buisness: former Sears franchisees go it alone

Boota and Diljit Uppal’s new store opens in same location

Terrace minor softball wins big at provincials

U14 team won gold, U16 team nabbed silver in nail-biter finish, U12 placed fourth

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.

Kitten OK after being rescued from underground pipe in B.C.

An adventurous feline has been rescued after getting trapped in an underground pipe in Kamloops, B.C.

A day after back-tracking, Trump defends summit performance

Amid bipartisan condemnation of his embrace of a longtime U.S. enemy, Trump at first sought to end 27 hours of recrimination by delivering a rare admission of error Tuesday.

Thai soccer players rescued from cave meet the media

Members of the Thai youth soccer team who were trapped in a cave have left the hospital where they have been treated since their rescue.

Elon Musk apologizes for calling cave rescue diver a ‘pedo’

Musk called a British diver involved in the Thailand cave rescue a pedophile to his 22.3 million Twitter followers on July 15.

Trudeau shuffles familiar faces, adds new ones to expanded cabinet

Justin Trudeau shuffles his front bench Wednesday to install the roster of ministers that will be entrusted with leading the Liberal team into next year’s election.

Hub for mental health and addictions treatment opens at B.C. hospital

St. Paul’s Hospital HUB is an acute medical unit that includes 10 patient beds

Restaurant Brands International to review policy over poaching employees

One of Canada’s largest fast-food company to review ‘no-poach’ franchise agreements

Calgary family’s vacation ends in tragedy on Texas highway

Three people died and four others were injured in the crash

Most Read