Payday loans are small short-term loans and all payday lenders must follow certain rules in BC. If you or someone you know has used a payday loan, here are 5 rules you’ll want to brush up on.
The law in BC for payday loans
A payday loan is a small short-term loan. With these loans, you can’t borrow more than $1,500 and it must be repaid within 62 days. Payday lenders also can’t charge more than $15 for every $100 borrowed, including all charges and fees.
Payday loans have been regulated in BC since 2009. They are governed in BC under the Business Practices and Consumer Protection Act and the Payday Loans Regulation. Our organization is responsible for enforcing those laws.
5 rules you may not know about payday loans
- You don’t have to get insurance with your payday loan.
- A payday loan must not be more than 50% of your pay cheque.
- You can repay your loan in full at any time before the due date and you can’t be charged extra for doing it.
- A payday lender is not allowed to issue you more than one loan at the same time.
- The payday lender must have posters showing the rates that they charge.
Where to go for help
Payday lenders must be licensed with us. You can check if a payday lender has an active licence by using our online search feature.
Explore our website to learn more about the payday lending rules in BC and find out when we can help.
Did you like this post? You might like these posts too!
Payday lending basics
Helen’s story: knowing the payday lending rules pays off
Why it matters: payday lenders informing you that insurance on a loan is optional
Payday loan or a high-cost credit product? How to tell the difference.
The risks of borrowing money from unlicensed lenders
About Consumer Protection BC
We are responsible for regulating specific sectors and certain consumer transactions in British Columbia. If your concern is captured under the laws we enforce, we will use the tools at our disposal to assist you. If we can’t help you directly, we will be happy to provide you with as much information as possible. Depending on your concern, another organization may be the ones to speak to; other times, court or legal assistance may be the best option. Explore our website at www.consumerprotectionbc.ca.