In 2019, the BC Government introduced changes to the Business Practices and Consumer Protection Act (BPCPA) to allow for the regulation and licensing of lenders of high-cost credit products Read the Government news release and Bill 7 (2019).
Today, the BC Government announced that, as of May 1, 2022, companies that offer or facilitate high-cost credit products (defined by regulation), such as high-interest installment loans and lines of credit above 32% interest, must be licensed and regulated by Consumer Protection BC. Read the Government news release and the Orders In Council (OIC 634/2021, OIC 635/2021)
The new framework aligns with the existing model for payday lenders, who have been licensed and regulated by Consumer Protection BC since 2009. The new high-cost lending rules include new disclosure requirements, prohibited fees and practices, and the establishment of a Consumer Financial Education Fund. The Fund, paid for by industry through a $200 annual fee, will be administered by Consumer Protection BC and used for consumer financial awareness and compliance with this part of the law.
Additional information about requirements will be provided by Consumer Protection BC to high-cost lenders and payday lenders offering high-cost credit products on an ongoing basis leading up to May 1, 2022. Details about consumer rights and obligations will also be available to the public on May 1, 2022, at www.consumerprotectionbc.ca.
About Consumer Protection BC:
Consumer Protection BC is the regulator of a variety of sectors and specific consumer transactions in the province. Our mandate is to license and inspect our regulated businesses, respond to consumer inquiries, investigate alleged violations of consumer protection laws, and to classify all general release motion pictures.
For more information about our organization, to read our recent enforcement actions, and to learn about our inspection and complaint-handling processes, please visit our corporate website at www.consumerprotectionbc.ca. You can also follow us on Facebook, Instagram and YouTube or read our blog for valuable consumer tips and resources.
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