Did you know that 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 the company to refund unlawful fees charged to their customers since late 2009. Please view the media release on our website for all the details.
There’s a lot to know about the payday lending law in BC but consumers do have rights. Here are seven things to know before you get a payday loan in BC:
- The total fees charged to you must never be more than $15 for every $100 amount borrowed – no matter what.
- You must receive a copy of the loan agreement at the time you sign it.
- A payday loan agreement must list all of the charges, terms and conditions of the loan.
- You have two business days to change your mind and cancel the loan – without paying any charges.
- You can repay a loan any time before the due date and cannot be charged extra for doing this.
- Payday lenders may not issue consumers more than one loan at the same time nor can they roll over a loan – meaning they cannot extend or renew a loan at an additional cost to the consumer or give them a new loan to pay out an old loan.
- Payday lenders may not issue a loan for more than 50% of what your paycheque or net income will be during the term of the loan.
For more information on this announcement, please view the media release on our website.