Whereas current provincial regulation in British Columbia sets payday loan lending rates at 23 for a 14 day loan, equivalent to 600 a year; And whereas payday loans have been shown to contribute to poverty, trapping vulnerable persons in a cycle of short term debt: Therefore be it resolved that the provincial government be requested to revise the Payday Loans Regulation under the Business Practices and Consumer Protection Act to limit loans to a 60 annual interest rate, in line with the usury laws of Canadas Criminal Code.
Ministry of Public Safety and Solicitor General In British Columbia, the maximum fees payable on payday loans is 17 per 100 borrowed. This is the second lowest rate in Canada. In Fall 2016, the Ministry undertook a consultation with stakeholders regarding consumer protections for British Columbians who use high-cost alternative financial services, including payday loans. The input received from stakeholders is being studied by Ministry staff and will inform the Ministrys review of high-cost alternative financial services in BC. The Province began regulating payday lending in 2009. All payday lenders doing business in British Columbia, including online lenders, must be licensed by Consumer Protection BC and meet the requirements set out by the Provinces regulatory framework, which contains a number of consumer protections for those who take out a payday loan. Consumers use alternative financial services outside of mainstream banks and credit unions for various reasons and circumstances. Despite the cost, there is demand for these kinds of short term loans.