 |
| Original News Release |
|
| Original News Release |
|
Example of current loan conditions and charges |
After Nov. 1, 2009 |
|
|
|
|
Average payday loan: $300. |
Average payday loan:
$300. |
|
Payday lender charge: 30
per cent of the principal. |
Payday lender charge: 23
per cent of the principal. |
|
Loan repayment length: 14
days. |
Loan repayment length: 14
days. |
|
Total cost of borrowing
based on $300 loan: $90. |
Total cost of borrowing
based on $300 loan: $69. |
|
Due on next pay day:
$390.
|
Due on next pay day: $369. |
|
Annual percentage rate: 782
per cent per year. |
Annual percentage rate: 600
per cent per year. |
How payday loan companies can become licensed
·
Payday lenders
will need to be licensed by the Business Practices and Consumer Protection
Authority. Lenders are encouraged to get in touch with the BPCPA by calling
1-888-564-9963, or by visiting the website at www.bpcpa.ca. Specific licensing details will be added at a
later date.
·
The licence fee
is $1,500 per year for a head office or primary location, and $750 per year for
each additional location. This funding will go towards administration of the
program.
·
Licensees will
need a criminal record check. This cost is included in the licensing fee.
How consumers can file a complaint
·
Consumers should
speak with the manager or head office of the payday loan business first to try
and resolve the matter. They can also get in touch with the Business Practices
and Consumer Protection Authority by calling 1-888-564-9963, or www.bpcpa.ca.
·
Non-compliance
with the new rules could lead to a lender’s licence being suspended or revoked,
a penalty of up to $50,000 or a fine or imprisonment on conviction.
-30-
|
contact: |
Ministry of Public Safety and Solicitor General 250 356-6961 |
BPCPA 604 296-2856 |
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For more information on government services or to subscribe to the Province’s news feeds using RSS, visit the Province’s website at www.gov.bc.ca. |
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