Helen* took out multiple payday loans from an online payday lender. When the company changed its business practices from e-transfers to distributing loans via credit cards, she was required to pay a $10 fee to receive the card. Something didn’t seem right. Helen had been watching the news and heard a BC-based company was ordered to refund consumers for charging additional fees on cash cards. She went to Consumer Protection BC’s website and started looking at payday lending rules. Based on what she found, Helen decided to reach out directly. “I wanted to see if it was a legitimate charge or not,” she says. “My situation was so similar; it just couldn’t be legal.”
After filing a complaint with Consumer Protection BC, which reviewed her case, Helen received a cheque for over $1,300 – a reimbursement for interest charged on the non-compliant loans as well as the $10 credit card loading fee. “The Enforcement Inspector was great; my case was very well handled,” says Helen. “I was surprised, and delighted. I honestly thought I would only get $10 back.”
Helen encourages other consumers to know the rules and contact Consumer Protection BC right away if they know that a company is taking advantage of people by breaking BC’s consumer protection laws.
*Name changed to protect the privacy of the individuals involved
Interested in more information?
This is a real story of a consumer who came to us for help. Consumer Protection BC is responsible for enforcing BC’s payday lending laws which include the maximum allowable cost of borrowing, disclosure of certain information, prohibiting certain unfair lending practices and more. Payday loans are small, short-term loans of $1,500 or less that must be repaid within 62 days (when the borrower receives their paycheque or other income).
We hope this blog post can assist you in making an informed decision. For more information about your rights and responsibilities when it comes to payday lending, please visit the Consumer Help section of our website.
ADDITIONAL READING:
What would you do? A guide to being a savvy consumer: payday loans
Payday lending basics
Payday lending: changes to the cost of borrowing now in effect in BC
This situation sounds very similar to the new Transit cards we have to use. We had to pay $6 just to be handed a blank card which we then had to go to a machine to “load” it. How are they allowed to charge us $6?????
Hi Arlene, thank you for your question. Transit cards such as Translink Compass Cards often requires a refundable deposit which means that you will receive your $6 back upon returning the card. This type of fee is different from payday loan credit cards.
I’ve taken a payday loan from Captain Cash [$600 – my payments are $124 x 4 + $140 x 2], are payday lenders allowed to charge high cost brokerage fees?
Hi Shannon, thanks for your question. It is my understanding that Captain Cash is not a payday lender as their maximum repayment period is 90 days (payday loans are up to 62 days). For this reason, your loan is not captured under the laws we regulate. However, if they are calling you and you would like them to stop you can request for a collection agency to contact you in writing only. To do this, fill out a form we created called “Request Communication in Writing Only” available on our website here.
Also our blog post with more information on this topic might be helpful for you (here’s the link to the post). I hope this is helpful to you and let me know if I’ve misunderstood your question!
I have taken out 4 loans with Cashone and it seems the interest keeps going up by around $6 every time on the same amount of loan ($100) 1st time was $138 total, then $145 total, then $152 then $158. I live in BC and just found out the max is 15% on every $100. So my last loan had an interest rate of 58%?
Hi Joe, you are right about the interest rate in BC and it cannot be more than $15 for every $100 for payday loans. Having said that, we would be able to assess your situation more accurately if we could take a look at your contract and get more information from you. Would you be able to call us at 1.888.564.9963? We are here today until 4:15 pm. Thank you, Joe!
Hello I found out today from a payday loan clerk that they pay 5 dallers to a certain bank to withdraw from the amount owing a day before the signed contract .The result of this is .if your waiting for a check on the 21st and say you had a $0.00 balance and your loan was $100.00 you be-$ 100.00 plus a $45.00 NSF charge and one more thing I’d like to find out .If anyone can give me a answer to.When talking to my bank I put a stop payment and than this company changes there business name to a bunch of num and letters and the bank continues to proceed with the transactions.and called on it and there response was they changed name to numbers that they couldn’t stop payment.bullshut sorry was my response there lieing
Hi Steve, thank you for contacting us! We would like a bit more information if possible – would you be able to submit a formal complaint to us? You can do so on our website here. Someone from our team will get back to you by email in a few business days!
I’m getting rude and ignorant emails and I’ve risen to the occasion in my replies. They are using threats, trying to intimidate me to now insulting me.
Another loan place after taking 3 months to pay back past due date keeps offering me loans even though I asked them to stop. Had to block texts and emails.
Hello and thank you for contacting us. We would like to get more information on your situation – can you please fill out our online complaint form? Once submitted, someone will get in touch with you. Here is the link to the form. Thank you!
I have had to contact credit society of bc for help to manage my debt as i became caught up in a cycle of dept with the use of pay day loans. One company called my work, my reference and divulged why they were calling while also threatening them. They also called me at work and threatened me as well while also calling me and emailing with threats. I have called to report this company and am waiting a response.
Hi Nicole, thanks for reaching out. I’m happy to hear you’ve called to report the situation to us so we can assess it. I might suggest filling out a complaint form so we have all the details on hand. That’s likely what we will ask for once we get a hold of you on the phone. Here’s a link: https://www.consumerprotectionbc.ca/complaint-assistant/ .
Hello,
I took a line of credit from Cash Money last 2018 I think. It grew to 4t and every month since the last two years I’ve been paying them almost 140 dollars bi weekly but only 25 dollars of that were taken off from the principal. So I am paying 280 dollars a month and only 50 dollars will go to the deduction of my principal. This afternoon I decided to visit the bank and paid them 1700 as partial payment for my debt but to my surprise I noticed that they are charging me 44 dollars for insurance bi weekly which explains why I am paying almost 110 dollars for interest and fees because the interest as it was reflected on my online bill is 66 or 64 dollars. My question is, can I asked them why and can I wave that insurance. I know before they adked me about loan protection and I said no to that. Who would pay 44 dollars biweekly for a 4 thousand loan? Can you advice me what to do?
Hi Eduardo, thank you for leaving us a message here. Some payday lenders sell insurance for payday loans but under the laws we oversee, they cannot require or request that you purchase any goods/services related to your payday loan (in this case: insurance). We would like to take a closer look at your situation, so would you be able to contact us? You can find different ways to contact us on our website here. Thank you!