Notification of fee changes for payday lenders (2022-2024)
Consumer Protection BC is an independent, self-funded, not-for-profit organization. Government has tasked us with regulating and licensing your sector. We have legal authority to set your licensing fees and other charges. In doing so, we are required by law to recover our costs, to consult with you and to provide at least ninety (90) days’ notice prior to changing or introducing new fees.
What is happening?
We are notifying you that the licensing fees and other charges for 2022-2024 are changing. Our Board of Directors has approved the following fee changes that will take effect on January 1, 2022.
- Annual 4% increases for all licence fees and other charges for 2022-2024.
|Fee Type||Current fees||Fees Jan. 1, 2022||Fees Jan. 1, 2023||Fees Jan. 1, 2024|
|New principal location||$5,412||$5,628||$5,853||$6,087|
|Renewal principal location more than 2 weeks prior to expiry||$5,306||$5,518||$5,739||$5,969|
|Renewal principal location less than 2 weeks prior to expiry||$5,366||$5,581||$5,804||$6,036|
|Renewal branch more than 2 weeks prior to expiry||$2,123||$2,208||$2,296||$2,388|
|Renewal branch less than 2 weeks prior to expiry||$2,183||$2,270||$2,361||$2,455|
|Change of name or address||$60||$61||$63||$66|
|Change of directors/officers/shareholder||$60||$61||$63||$66|
|Non-sufficient funds payment||$58||$59||$61||$63|
Why are fees changing?
Your licensing fees pay for the direct costs of regulating your sector, such as licensing, compliance inspections, complaint handling and enforcement activities as well as indirect costs like IT, finance and accounting, and office rent. Every year these costs increase. In some cases, cost increases are consistent with inflation, in other cases increases are based on specific and unique factors related to a sector (for example, changes to the law that result in new regulatory requirements).
Our costs for regulating the payday lending sector have remained relatively consistent. Throughout the COVID-19 pandemic, we have made every effort to reduce costs while maintaining our ability to operate. However, due to a 0% increase in fees for 2021 and increased inflationary pressures we are implementing a 4% annual increase for the next three years to cover our costs for regulating your sector.
What did we hear from you?
We heard from 18% of the licensees from your sector on our email list. Our goals for the consultation were to raise awareness of pending licence fee changes and to solicit your feedback on those changes and our process. Of those who responded to our survey from your sector, 93% indicated they understood that we were proposing to change licensing fees and other charges. Further, 87% of respondents indicated they understand how we use their fees to regulate your sector.
The emergent themes from the feedback we received can be summarized as follows:
- Objection to raising fees and/or the size of fee increase.
- Request for a deferral of fee increases, or waiving of fees, due to COVID-19.
- The fee increase is reasonable or not a significant increase.
With respect to these feedback themes, we would like to provide the following context and clarification:
We recognize that the COVID-19 pandemic has impacted your sector. However, it is important that we maintain our ability to regulate this sector and we are mandated to recover our costs to ensure that we have the resources required to do so.