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.
