CKNW: Province regulations lowers amount payday loan companies can charge

Posted September 22, 2016

The provincial government has announced a reduction in the amount payday loan companies can charge for lending.
 
The regulations say consumers will be charged a maximum of $17 for every $100 rather than $23.
 
Solicitor General Mike Morris says British Columbians use payday loans more than anyone else in the country and stand to benefit from the savings.
 
“Hopefully it puts us in the right spot. If we commit to a lower rate than that, then we stand the possibility of driving this kind of service underground.”
 
The NDP has responded by saying B.C. has the highest rate of working-age people living in poverty and the government needs to do more.
 
The changes will start in January.
 
Surrey North ACORN co-chair Anna Kowalewski says she wished the government was more aggressive and reduced it to $15 – similar to Alberta and Ontario.
 
“That $2 can mean the difference of having to take out another loan or buy food … It might not be a lot of money, but over the hundreds of dollars, it adds up.”
 
A 2014 VanCity study showed British Columbians are more likely to use payday loans compared to the rest of the country.
 
The regulations will come into effect in 2017.
 
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Article source: CKNW News