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

Province 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

Northern First Nations partnership reshaping government’s approach to reconciliation

Kaska, Tahltan and Tlingit First Nations share Premier’s Award for Innovation with ministry

Prince Rupert Rampage to start a brief road trip

The Prince Rupert Rampage head out east on a road trip to Williams Lake and Quesnel.

Shames Mountain keeps bunny hill free

Co-op wants to make the sport more accessible for beginners

Ottawa apologizes to Japanese family in B.C. after chopping historic cherry trees

Plaque installed in Prince Rupert to honour the memory of Shotaro Shimizu

New Coast Guard radar boosts marine traffic monitoring off B.C. coast

Six radar installations set up for Georgia Strait to Queen Charlotte Strait to Prince Rupert

This Week – Episode 111

Selena Horne, Charles Hays high school musical star, co-hosts the Northern View’s weekly show

Delivering the paper as a family

The Northern View is looking for newspaper carriers in Prince Rupert, join our team today

Quesnel fed up with detour, urges Ottawa to speed up road repair

West Fraser Road has been on detour since spring 2018, with no plans to repair washout until 2020

5 B.C. cities break temperature records

Parts of B.C. remain warm, at 10 C, while others feeling chilly

B.C. teacher’s Amazing Race takes students on Canada-wide adventure

Agassiz high school students say they had the experience of a life time

Don’t sign USMCA until LGBTQ language excised, U.S. lawmakers urge Trump

The trade agreement, forged after 13 months of tense negotiations between Canada and the U.S. is scheduled for Nov. 30

US official: US intel says prince ordered Khashoggi killing

Vice-President Mike Pence told reporters that ‘the murder of Jamal Khashoggi was an atrocity.’

Canada’s health system commendable overall but barriers to care remain: UN

The United Nations says Canada’s health care system is “commendable” overall but vulnerable groups still face barriers to quality care.

Most Read