A payday loan is a small short-term loan. With payday loans, you can’t borrow more than $1,500 and it must be repaid within 62 days.
The payday lender must have posters showing the rates that they charge.
You should not be charged for cash cards. You can choose to include insurance on your loan at an extra cost, but it is your decision.
A payday lender is not allowed to sell you insurance. Nor should they require or request that you get your loan insured.
Please be aware that you should never pay upfront to borrow money. Though some companies may ask you to pay money to secure a loan, this is illegal in BC.
- The name, address, contact information, and license number of the payday lender
- The identity of the person taking the loan
- A statement that it is a high-cost loan
- The borrower’s cancellation rights
- The amount you initially borrowed before interest and fees, also known as the principal
- The total amount owing, including all fees and interest
- The time frame of the loan
- The date that each payment is due
- Information about what you can do if they don’t meet their obligations
If you are getting your third loan in two months, you can pay it off in three bi-weekly payments.
- Make sure that you are dealing with a licensed business. No matter where the payday lender is located, if they are lending to BC residents, they must have a licence with us. This is the only way to make sure that they are following BC laws and not charging excessive interest rates. If you do not deal with a licensed payday lender, you may not be protected under BC law.
- Read the fine print! Find out about the terms and conditions of the loan. This is the best way to make an informed decision about your loan.
- Watch for red flags. Can you find the business? Do a quick internet search to make sure that the business has a valid address. Try and make sure that the business gives you real contact information. The internet is also a good source for customer reviews.
Read our consumer tips:
- Payday lending: changes to the cost of borrowing now in effect in BC
- What would you do? A guide to being a savvy consumer: payday loans
- Payday lending basics
- Helen’s story: knowing the payday lending rules pays off