High-cost credit granting
By law, anyone who offers, arranges, provides, or facilitates high-cost credit products to or for consumers in BC needs a licence and must follow the rules. This includes loan brokers and pawn brokers.
What is a high-cost credit product?
Any fixed or open credit product, or lease that is primarily for personal, family, or household purposes and has an annual percentage rate (APR) or annual interest rate (AIR) that is more than 32%. This includes credit products usually known as high-interest loans and lines of credit.
It is not a payday loan or a mortgage.
Who does not need to be licensed as a high-cost credit grantor?
- Any business that offers, arranges, provides or facilitates a credit product for or to borrowers that has an APR or AIR (as applicable) that is less than 32%.
- Savings institutions are exempt from these new rules. This includes banks, credit unions, and extra-provincial trust corporations.
How to get licensed
You must provide the following to be licensed.
Licence application forms
- High-cost credit grantor application checklist
- High-cost credit grantor application
- High-cost credit grantor application for additional location
- Required Cancellation Notice
- Statutory declaration for residential address
- Credit card authorization form