High-cost credit granting

By law, and as of May 1, 2022, 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.

Read the Business Practices and Consumer Protection Amendment Act, 2019.
Read the High-Cost Credit Products Regulation (currently available through OIC 635/2021).

How to get licensed

You must provide the following to be licensed.

Licence application forms