New Payday Lending Laws In Canada
In recent news, there are new payday lending laws in British Coumbia Canada. With these new regulations there are caps on interest rates and rules prohibiting predatory lending.
B.C.’s Business Practices and Consumer Protection (Payday Loans) Amendment Act and the Payday Loans regulation prohibit lenders, including phone and Internet lenders, from:
· 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.
Leadpile Lead Exchange has recently started generating payday loan leads in Canada, and is very much concerned with any legislation that is going on there. Just like US payday loans, we know that payday loans can be a much needed loan for many consumers. We will continue to try and match these consumers that need these short term loans, with those that can provide it to the consumer.