The province says it’ll be getting tougher on payday lending.
In a news release, officials said that measures are being taken to protect people from “excessive fees” when cashing BC Employment and Assistance cheques.
According to the province, for some time, B.C.’s most financially vulnerable individuals have used non-traditional lenders and credit providers, who often impose high borrowing costs and debt loads on borrowers.
Limits on fees for cheque cashing, and high-cost loans, will go into effect on Sept. 1 as follows:
*Lowering the maximum fee to $15 from $17, for every $100 borrowed, matching the lowest rate in Canada.
*Extending the payday-loan agreement cancellation period, so a payday-loan borrower now has two full business days to cancel the loan without penalty.
*Prohibiting payday lenders from requiring, requesting or accepting consent from a borrower, to use or disclose their personal information for anything other than for arranging or providing a payday loan.
*Clarifying payday lenders’ data-reporting timelines. The receipt of more timely data will help Consumer Protection BC to focus its education and compliance efforts, and the data will help to inform government about trends and changes in the industry.
*Limit fees for cashing social and disability assistance cheques:
*Capping the fee for cashing a provincial social assistance or disability cheque at $2, plus 1% of the value of the cheque, up to a maximum fee of $10. Note: this change applies to anyone in B.C. who cashes cheques.
