The borrowing rates of payday loans will be lowered under new regulations announced today.
As of Jan. 1, 2017, the maximum allowable charge for a payday loan in B.C. will drop from $23 to $17 for every $100 borrowed, making it the second-lowest rate in Canada.
A payday loan is a loan of $1,500 or less, for a term of 62 days or less.
- Almost 159,000 British Columbians took out payday loans in 2015, according to information provided to Consumer Protection BC by the payday loan industry.
- In 2009, British Columbia became one of the first provinces in Canada to regulate payday loan companies.
- Through Consumer Protection BC, since 2012, several payday loan companies have been ordered to refund a total of more than $1 million to consumers who were over-charged.