If you have decided that you want to access a high-cost credit product, there are a few things to know and look for before you sign a high-cost credit agreement.
If you aren’t sure what exactly qualifies as a high-cost credit product, and therefore what rules apply, read up on the definition and what rights you have.
3 things to know about high-cost credit agreements
- By law, you must get a copy of your high-cost credit agreement (not just be given access to a copy but actually get a copy).
- The high-cost credit grantor must review all the required terms of the high-cost credit agreement with you and have you initial them before the agreement is signed by either party.
- Your high-cost credit agreement must include:
- the principal amount or the amount of the funds available to you
- the terms of the agreement
- the dates that your payments are due and the amounts of those payments
- the annual interest rate (and the APR if applicable)
- total cost of the credit, in a dollar amount
- what happens if you miss a payment
- a statement of your cancellation rights
3 things to look for before signing a high-cost credit agreement
- Before doing business with a high-cost credit grantor, find out if the business is licensed with us. Find out by doing a search of our licensed businesses on our website.
- Do you know who you are actually doing business with? This can be harder than it seems, especially with online businesses. The laws in BC apply to online high-cost credit grantors too. Dig into the details to find out more about the company.
- Understand what allowable extra fees you may be paying. For example, charges and expiry dates may apply for cash cards.
Learn more
There’s more to know before agreeing to a high-cost credit agreement. Please do your research first and make sure you understand all the terms of the agreement.
If you want to know more about your rights (including cancellation rights) when it comes to high-cost credit products, visit the Consumer Help section of our website.
If you want to read more about the laws that regulate high-cost credit grantors, look through Business Practices and Consumer Protection Act and the High-Cost Credit Products Regulation.
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About Consumer Protection BC
We are responsible for regulating specific industries and certain consumer transactions in British Columbia. If your concern is captured under the laws we enforce, we will use the tools at our disposal to assist you. Depending on your concern, another organization may be the ones to speak to; other times, court or legal assistance may be the best option. Explore our website at www.consumerprotectionbc.ca.