As of September 1, 2018, the laws in BC relating to payday loans were changed to better protect borrowers. We've updated our payday loan pages to reflect the changes.
A key change relates to the cost of taking out a payday loan. Payday lenders can’t charge more than $15 for every $100 borrowed, including all charges and fees. The maximum used to be $17 for every $100 borrowed. While this change does lower the cost of a payday loan, they are still a very expensive way to borrow money. For a 14-day loan, the $15 charge on $100 borrowed translates into an annual interest rate of 391%!
Another significant change relates to the “cooling-off period”. It has been increased to two days from one day. That means a borrower has two business days to cancel a payday loan — for any reason. They must not be charged extra for cancelling.
See our complete coverage of payday loans:
- Why You Should Avoid Payday Loans: Not only are they a very expensive way to borrow money, there are other risks.
- Getting a Payday Loan: If you have no other option, learn how to prevent problems when getting a payday loan.
- Cancelling a Payday Loan: You can back out of a payday loan (for any reason) within the cooling-off period, and you can sometimes cancel after this period.