|The Case of the Loan Shark Lender|
Fraud Prevention Month Case #3: Ever since Bob changed jobs several years ago, the money just never seemed to go as far. Lately, he had been relying on payday lenders such as Cash Barn and Money Tower to get him through to the end of the month. But now there was a new payday lender called Money Penny in town and they were advertising a chance to win a pair of tickets to see an Elvis impersonator in concert. There was just one catch. You had to take out a payday loan for $200 or more.
Bob was a huge fan of Elvis, so he jumped at the chance. He went to Money Penny’s location and took out a $300 payday loan for 14 days. He asked for a copy of the contract, but was told that was not possible because the photocopier was broken. Bob didn’t end up winning the tickets. When he went to pay back the payday loan, he discovered that he owed much more than had been agreed. When he asked to see the contract, he discovered that the figure was different than what they had agreed upon.
WHAT WOULD YOU DO?
Consumer Protection BC licenses and regulates all payday lenders in BC. According to the Payday Loan Regulation, it is illegal for a payday lender in BC to offer a prize or reward to take out a payday loan. By law, a payday lender must give you a copy of the loan agreement at the time you sign it. Period.
March is Fraud Prevention Month - know your rights! If you have questions about your rights and responsibilities as a consumer in British Columbia, please contact Consumer Protection BC toll free at 1-888-564-9963, or visit or corporate website at www.consumerprotectionbc.ca. You can also follow Consumer Protection BC on Twitter @ConsumerProBC, like us on Facebook and read our blog for valuable consumer tips. The “What Would You Do?” columns are presented by Consumer Protection BC to raise consumer awareness during Fraud Prevention Month.
Visit Consumer Protection BC at the 2011 Senior's Expo on March 15th at Pearkes Recreation Centre in Victoria.
Take the Competition Bureau's Fraud Quiz.
Links to all Fraud Prevention Month "Cases":