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Payday Lending

Posted on:
29 February 2016
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Written by Consumer Protection BC’s enforcement department

Scenario:
You missed five days of work because your kids were sick and your pay cheque is less than what you normally get. It’s the end of the month and you’re $300 short on your rent. You see an ad in the newspaper for payday loans. You think to yourself that this is exactly what you need to get you through to your next pay cheque. You borrow the money and pay it back on your next payday. But now you need another payday loan to make up the shortfall. You end up getting three payday loans over the next two months, and the payday lender gave you another loan to pay off the previous one. You find yourself in a no-win situation, you can’t seem to pay it off without having to borrow more and you aren’t sure when you have to pay the money back.

What would you do?
(a) Check your contract for the terms of repayment.
(b) Call the payday lender to tell them you have the right to repay the loan over two or three pay periods.
(c) Contact Consumer Protection BC if the payday lender won’t allow you to extend the repayment terms.

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Payday Lending

Posted on:
08 December 2014
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Did you know that Consumer Protection BC oversees BC’s payday lending laws? One question we get from consumers is “how much does a payday loan really cost and how does it differ from other types of borrowing?”

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Payday Lending

Posted on:
11 December 2012
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You might recall that in March 2012, we ordered the parent company of The Cash Store and Instaloans, Cash Store Financial Inc., to stop charging illegal fees and to repay consumers who were overcharged. As a result of a Supplemental Compliance Order issued on November 30, 2012, the refund process is now scheduled to begin. Following from this process, we expect that all illegally-charged funds could begin to be refunded by February 2013.

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Payday Lending

Posted on:
27 March 2012
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Did you know that in a 12 month span, there were more than 700,000 payday loans taken out in BC? Consumer Protection BC licenses and regulates this industry in the Province. We want to tell you about an important announcement that may affect you if you have used the services of Cash Store Financial Inc. since 2009. We have just ordered Cash Store Financial Inc. to refund unlawful fees charged to their customers since late 2009. Please view the media release on our website for all the details.

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Payday Lending

Posted on:
05 January 2011
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Did you know that payday lending became regulated in 2009? So what does this actually mean?

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Payday Lending

Posted on:
24 November 2010
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Consumer Protection BC licenses payday lenders both located in BC and those doing business over the internet or by telephone with BC consumers. We are also responsible for enforcing the laws regarding this industry.

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