Know your obligations
The information on this page is to help you understand the payday lender law, and ensure you maintain your good standing as a business. This is a general overview of our expectations and the laws we oversee. It is your responsibility as a BC-licensed payday lender to review the laws in detail, comply with municipal bylaw and get independent legal advice, if necessary.
Report changes to your business
You must report any changes to your business within 14 days including a business name change, location change, changing partner or corporate officer, change in business model, or if you are selling your business.
Report aggregate loan data
Submit a standard payday loan agreement
You must submit a copy of a standard payday loan agreement which shows all charges for every transaction along with the terms & conditions.
Set up of charges and fee structure
You may charge up to 17% of the principal of the loan. This amount must include all fees and interest, except interest charge if the borrower defaults by not repaying the loan as agreed to in the loan agreement.
Display the rates you charge
Display your licence and licence number
You must publicly display your licence in your place of business. You must also include your licence number on any print or web materials, including:
- business cards
- print collaterals (such as brochures and flyers)
- documentations (including contracts)
- your website
If you are an online lender, your licence number must be at the top of the first page of the website.
Comply with cash card issuance policy
It is important to understand that a prepaid card provided, distributed or otherwise made available by a payday lender is a cash card and therefore has a direct impact on amounts charged, required or accepted for or in relation to cash cards issued by the payday lender.
Regardless of the overall cost of borrowing limit in BC of 17%, there is an outright prohibition on a payday lender charging, requiring, or accepting any amount related to the issuance of a cash card.
Comply with business practices
You must not engage in practices that encourage continued debt and dependence or other unfair practices. For example, you may not issue more than one loan to a borrower at the same time. You may not roll over one loan into another loan with new charges. You may not issue a loan for more than 50% of the borrower’s pay cheque or net income to be received during the term of the loan. If borrower is taking their third loan in a two-month period, repayment of loan must be phase over two or three pay periods.
Understand consumer rights
Your consumer has the right to change their mind and cancel the loan by the end of the following day – without paying any charges. Your consumer can repay a loan any time before the due date and cannot be charged extra for doing this.
Understand our inspection process
We perform routine, random, follow-up, and complaint-based inspections on all our regulated businesses to ensure they comply with the law.