Maple Ridge Coun. Tyler Shymkiw

Maple Ridge Coun. Tyler Shymkiw

Cost of payday loans to drop in B.C.

Maximum allowable charge for a payday loan in B.C. will drop from $23 to $17 for every $100 borrowed.



The borrowing rates of short-term cash loans will be lowered under new regulations announced Wednesday in Maple Ridge.

“Sometimes people need an extra couple hundred dollars to survive between paydays and turn to payday lenders for high-cost, short-term loans,” Minister of Public Safety Mike Morris said in front of Maple Ridge city hall.

Last year, 159,000 people did that.

As result, the government is setting a limit on interest rates charged by payday loan companies.

As of Jan. 1, 2017, the maximum allowable charge for a payday loan in B.C. will drop to $17 from $23 for every $100 borrowed, making it the second-lowest rate in Canada.

That builds on regulations the province implemented in 2009, before which borrowers paid whatever the lender charged – as much as $30 per $100.

Borrowers also had few, limited protections and little recourse against harmful lending practices, such as rollovers, extended repayment terms, disclosure requirements, said a government news release.

The government is also launching a 30-day review of other types of loans, such as installment loans, vehicle-title loans, rent-to-own sales and cheque cashing services.

“These are all expensive ways to borrow money or to purchase goods,” Morris said.

He added that he wants to hear ideas how to help people avoid getting into debt. Rules already require payday lenders to be licenced and to show the full costs of credit.

Maple Ridge Coun.Tyler Shymkiw led the initiative to stop any more payday loan stores from opening in the city.

Under a Maple Ridge bylaw passed in 2015, once an existing store closes, another can’t open.

Last year, there were six local stores in Maple Ridge offering services for as cashing pay cheques or loaning small amounts of money at high interest rates.

Under the bylaw, those stores would stay open, but would be refused a business licence if they closed for more than six months, then tried to re-open.

Shymkiw said, as former chair of the Friends in Need Food Bank, he saw the “devastating effects these short-term, high-interest payday loans have on our communities. “This is a positive step towards improving the lives of families and working people in this province.”

He liked the ongoing consultation on the topic of high-interest lending because it’s always changing. He said the federal government deregulated the payday loan industry in 2006, but now provinces are starting to respond with their own regulations.

“So this is definitely a very positive step in the right direction.”

Scott Hannah, CEO of the Credit Counselling Society of B.C., said high-cost financial service can add significantly to people’s financial problems.

 

 

 

 

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Tidal Café owners Blythe and Kurt Reimer (left) and Toscano’s head chef and general manager Tristan Taylor have been sharing deck space to help both businesses during the expanded COVID public health order restrictions that ban indoor dining. Photo by Terry Farrell
Neighbouring Comox restaurants share patios for mutual benefit during COVID restrictions

Two restaurants in Comox are working together to help ease the burden… Continue reading

Aria Pendak Jefferson cuddles ChiChi, the family cat that ran away two years ago in Ucluelet. The feline was missing until Courtney Johnson and Barry Edge discovered her in the parking lot of the Canadian Princess earlier this month. Aria and her parents were reunited with ChiChi in a parking lot in Port Alberni. (SUSAN QUINN/ Alberni Valley News)
A little girl’s wish is answered as her cat came back

Courtenay family reunited with cat that went missing in Ucluelet in 2019

John Ludlow is making leis for sale for $20 each, with all proceeds to be donated to the Comox Valley Transition Society. Photo by Erin Haluschak
Celebrating kindness, joy and helping others on Lei Day

Ludlow is making leis for sale with proceeds to be donated to the Comox Valley Transition Society

Cumberland is finalizing its tax rate bylaw for the year, which will see a 4.93 per cent increase. Photo by Mike Chouinard
Cumberland moving ahead on 4.93 tax hike

Residential rates’ hike was less than projected during planning stages

The Coastal Fire Centre is looking ahead to the wildfire season on Vancouver Island. (Phil McLachlan – Western News)
Coastal Fire Centre looking ahead at wildfire season on Vancouver Island

‘We’re asking people in the spring to be very careful’

A large crowd protested against COVID-19 measures at Sunset Beach in Vancouver on Tuesday, April 20, 2021. (Snapchat)
VIDEO: Large, police-patrolled crowds gather at Vancouver beach for COVID protests

Vancouver police said they patrolled the area and monitored all gatherings

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

The following is a list of restaurants offering take-out and patio dining. ADOBE STOCK IMAGE
List of Comox Valley restaurants offering take-out, patio dining options

Restaurants in the Comox Valley continue to adapt to government-imposed restrictions in… Continue reading

A teacher-librarian in Nanaimo was fired in 2019 for checking out an age-inappropriate graphic novel to a student. The discipline agreement was published Wednesday, April 21. (News Bulletin file photo)
Nanaimo teacher-librarian fired for checking out too-graphic graphic novel to student

Teacher had been previously disciplined and suspended on two occasions

Vancouver Island Connector and Tofino Bus is putting a 41-passenger electric bus through its paces in a three-month trial run between Nanaimo and Victoria. (Photo submitted)
Electric bus on trial run serving Victoria-to-Nanaimo route

Vancouver Island Connector and Tofino Bus trying out 41-seat electric coach for three months

There are lots of resources for seniors looking for information about COVID-19. (Kevin Rothbauer/Citizen)
COVID questions? Here are some phone-based resources available for seniors

Here is a list of numbers to keep on hand for Vancouver Islanders who aren’t fond of computers

Chum Salmon fry being examined with multiple motile and attached sea lice on Vargas Island. (Cedar Coast Field Station photo)
Study: Tofino fish farm sea lice infestations add fuel to push to remove open pens

Ahousaht First Nation asking for higher standards than what DFO requires

FILE – The Instagram app is shown on an iPhone in Toronto on Monday, March 19, 2018. THE CANADIAN PRESS/Graeme Roy
Judge acquits B.C. teen boy ‘set up’ on sex assault charge based on Instagram messages

The girl and her friends did not have ‘good intentions’ towards the accused, judge says

Kai Palkeinen recently helped a car stuck on the riverbed near the Big Eddy Bridge. While the car could not be saved, some of the driver’s belongings were. It’s common for vehicles to get stuck in the area due to significantly changing river levels from Revelstoke Dam. (Photo by Kai Palkeinen)
“I just sank a car’: Revelstoke resident tries to save vehicle from the Columbia River

Although it’s not permitted, the riverbed near the city is popular for off roading

Most Read