Payday lenders have proliferated in urban areas

B.C. lowers cap on payday loan fees

Fee for short-term borrowing lowered to $17 per $100, a rate Public Safety Minister Mike Morris says is second lowest in Canada

New B.C. regulations have lowered the limit on payday loan charges to $17 per every $100 borrowed.

Regulations that took effect Jan. 1 lower the maximum charge from $23, including all fees. The regulation covers short-term loans up to $1,500 for a term of 62 days or less.

The B.C. government began tightening regulations on payday lenders in 2009, when they limited charges to 23 per cent of the loan, and required lenders to post signs reminding customers they were paying an annualized interest rate of up to 600 per cent.

Public Safety Minister Mike Morris said the new 17 per cent rate is the second lowest in Canada.

The industry reported to B.C. regulators that 159,000 payday loans were taken out in 2015. Most borrowers hand over a cheque or a pre-authorized debit for the full amount of the loan, plus fees, to be paid from their next paycheque.

Scott Hannah, president of B.C.’s Credit Counselling Society, said the reduced fee is a step in the right direction at a time when consumer debt levels are at record levels.

Payday lenders are restricted to disclose all charges, and loans are limited to half of the borrower’s net pay during the period of the loan. Details of consumer protections in B.C. can be found here.

 

Just Posted

More snow called for the Kootenays

Environment Canada issued the bulletin Tuesday under its “BC Traveller’s Routes forecast”

Kootenay employers ready to meet job seekers at Black Press career fair

Dozens of companies will attend the event on Nov. 15 at the Ktunaxa Nation Building in Cranbrook

Sandblasting Silver City skate sign

The Trail Sk8 Park was closed on Thursday so workers could ready a sign for painting

Trail vet says voting system has worked for 150 years

Letter to the Editor from Vaughn Budd of Trail

Area A seeks views on cannabis rules

The public hearing for Area A residents will go Tuesday, Nov. 13 at 5 p.m.

VIDEO: Amazon to split second HQ between New York, Virginia

Official decision expected later Tuesday to end competition between North American cities to win bid and its promise of 50,000 jobs

Stink at B.C. school prompts complaints of headaches, nausea

Smell at Abbotsford school comes from unauthorized composting operation

Fear of constitutional crisis escalates in U.S.; Canadians can relate

Some say President Donald Trump is leading the U.S. towards a crisis

B.C.-based pot producer Tilray reports revenue surge, net loss

Company remains excited about ‘robust’ cannabis industry

Canada stands pat on Saudi arms sales, even after hearing Khashoggi tape

Khashoggi’s death at Saudi Arabia’s consulate in Istanbul further strained Riyadh’s already difficult relationship with Ottawa

Feds pledge money for young scientists, but funding for in-house research slips

Canada’s spending on science is up almost 10 per cent since the Liberals took office, but spending on in-house research is actually down

Disabled boy has ‘forgiven’ bullies who walked on him in stream, mom says

A Cape Breton teen who has cerebral palsy was told to lie in a stream as other kids walked over him

Letters shed light on state of mind of B.C. mom accused of daughter’s murder

Trial of South Surrey mother Lisa Batstone begins in BC Supreme Court

Vancouver man must pay $22,000 after breaking strata rules

Peter Gordon took his fight over his rented condo to the civil resolution tribunal, but lost

Most Read