Did you know that payday lending became regulated in 2009 in BC? So what does this actually mean?
All payday lenders require licences to conduct business in British Columbia and are expected to follow BC’s payday lending rules. If you are considering taking out a payday loan, you can confirm that the business is licensed using our licence search. There is a lot to know about payday loans but here are some basics.
What is a payday loan?
A payday loan is a small short term loan. Borrowers may not receive more than $1,500 and it must be repaid within 62 days of receiving it. Typically payday loans are paid back when the borrower receives a paycheque (usually within two weeks).
How much can I be charged for borrowing?
The most that can be charged for a payday loan is $15 for every $100. This means that in a typical case, a person borrowing $100 can expect to repay a maximum of $115 when their repayment is due. Different payday lenders may charge different amounts or different types of fees but the bottom line is that you should only be charged a maximum of $15 for every $100 you borrow, for all fees, no matter what.