British Columbia new payday rules

The new rules are effective Nov. 1st in British Columbia. Compliance and enforcement will be administered by Consumer Protection BC, a not-for-profit organization that operates at arm’s length from government.

Here are the rules in a nutshell:

  • Practices that unreasonably increase the borrower’s debt load, including rollovers that require borrowers to pay significant extra fees for extending the time to pay a loan.
  • Requesting an assignment of wages, or collecting from a borrower’s employer.
  • Charging more than 23 per cent of the amount borrowed in interest and fees.
  • Lending more than 50 per cent of a borrower’s take-home pay or requiring repayment before the borrower’s next payday.
  • Operating unless licensed by Consumer Protection B.C.

You can read more at the Canadian government website.

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