Consumer Protection BC has issued a compliance order and an administrative penalty against Adwell Financial Services Inc, a licensed payday lender based in Burnaby BC, for:
- Failing to display a sign visible to borrowers at each place where a payday loan is negotiated, contrary to section 13(1)(b) of the Payday Loans Regulation (PLR)
- Failing to ensure the sign visible to borrowers immediately on entering the place of business was the correct size and format, contrary to section 13(2) of the PLR
- Failing to ensure the loan repayment was to be spread over the borrowers next pay periods as required for the third payday loan in a 62-day period, contrary to section 23(2) of the PLR
- Failing to ensure each payday loan agreement included the annual percentage rates contrary to section 112.06(2)(k) of the Business Practices and Consumer Protection Act (BPCPA)
Read the compliance order, administrative penalty and the full reasons for the decision.
The business has been issued an administrative penalty of $5,800. It has also been ordered to reimburse Consumer Protection BC partial inspection costs in the amount of $1,975 within 30 days. The business must also provide a report detailing all borrowers who received a third or subsequent loan in a 62-day payday loan during the period of December 9, 2022 and February 18, 2025, by March 4, 2025.
By law, the business has 30 days to request a reconsideration of the decision. All money received from administrative penalties is deposited into the Consumer Advancement Fund (as required by section 169 of the BPCPA).
About Consumer Protection BC
Consumer Protection BC is a not-for-profit regulator responsible for overseeing certain industries and specific consumer transactions in the province. Their mandate is to license and inspect their regulated businesses, respond to consumer inquiries, investigate alleged violations of consumer protection laws, and classify all general release motion pictures.
For more information about Consumer Protection BC, to read their recent enforcement actions, and to learn about their inspection and complaint-handling processes, please visit their website at www.consumerprotectionbc.ca. You can also follow them on Facebook, Instagram and YouTube or read their blog for valuable consumer tips and resources.