Today, the BC Government announced changes to the province’s cheque cashing and payday lending rules.
As of September 1, 2018:
- For BC employment and assistance cheques, the fee for cashing these cheques will be capped at $2 plus 1% of the value of the cheque, up to a maximum of $10.
- For payday loans, the maximum fees allowed will be lowered to $15 for every $100 borrowed, matching the rate in Alberta and Ontario.
- Borrowers will have two full business days to cancel a payday loan without any penalty – currently, it is one business day.
- Payday lenders will be prohibited from requiring, requesting or accepting consent from a borrower to use or disclose their personal information for anything other than for arranging or providing a payday loan.
- Consumer Protection BC will have the authority to set a uniform time period for the reporting of aggregate payday lending data by payday lenders.
As the regulator for the payday lending sector, it’s our responsibility to license, inspect and enforce the law. We will provide more information to our stakeholders leading up to September 1. We will also be updating our website content during that time. We invite you to explore www.consumerprotectionbc.ca on a regular basis.
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, classify all general release motion pictures and provide information and referrals to consumers.
For more information about our organization, to read 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 Twitter @ConsumerProBC, like us on Facebook and read our blog for valuable consumer tips and resources.