(Wikimedia Commons)

2-year investigations nets $900,000 in refunds for payday loan customers

Consumer Protection BC says selling practices were ‘aggressive and deceptive’

A two-year-long investigation has netted nearly $900,000 for borrowers unfairly targeted by payday loans.

Consumer Protection BC had found data to show that three payday lenders had reported “abnormally high sales of credit insurance” in early 2017.

In the two years since, a multi-agency investigation found that due to the lenders’ “aggressive and deceptive” sales of insurance products, their borrowers were entitled to nearly $400,000 in refunds.

Consumer Protection BC found that two of the lenders were misleading borrowers, and one was not giving them enough time to pay off their loans.

The investigation led to more than half of the payday lenders in the province agreeing to refund about $475,000, leading to a total of $875,000 back for impacted customers.

“As we broadened that investigation, we discovered that the same types of unlawful activities were widespread within the industry,” said Shahid Noorani, vice president of regulatory services.

“We’ve spent the last year correcting lending behaviour that violated borrower’s rights.”

The province tightened payday loan regulations at the beginning of 2017, pushing the maximum charge per $100 borrowed at $17, down from $23 and around the same as average credit card interest rates.

READ MORE: New B.C. regulations on payday loans don’t address real issues: advocates


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Remembering Jack Neil, ace fighter pilot and father

Remembrance Day is an opportunity for John Neil to remember his father, Jack

Ladysmith Arts Council creates Remembrance Day poppies for display

The poppies were prepared by both established artists, and student artists

Carbon monoxide poisoning incident brings dangers of the gas to light

Chemainus adult and child go to hospital for treatment

Man seriously injured after shock and fall from electrical tower in Cassidy

20-year-old was being transported to hospital in Victoria

Ladysmith Legion exists to serve the community

Members of the Legion are busy all year round providing services and funding to the community

VIDEO: Hong Kong police shoot protester, man set on fire

It was the second protester shot since the demonstrations began in early June

Sportsnet fires Don Cherry after negative comments about immigrants

Don Cherry had said immigrants don’t wear poppies like other Canadians do

Trudeau’s new cabinet: Gender parity because it’s 2019? Or due to competence?

Prime Minister Justin Trudeau will soon appoint his new cabinet

Canada among three G20 countries least likely to hit emissions targets

It says Canada, South Korea and Australia are the farthest off

Conservatives’ Scheer wants Trudeau to open Parliament Nov. 25

That’s five days after Justin Trudeau is scheduled to swear in a new cabinet

Last remaining Centurion tank from the Korean War makes its journey ‘home’ to B.C.

Tank arrives in B.C. the day before Remembrance Day after a more than 4,500-kilometre transfer

‘Your vehicle burns a lot of fuel:’ Victoria drivers wake up to angry notes

‘This handbill was left on your vehicle because your vehicle burns a lot of fuel,’ notes read

Canadians mark Remembrance Day this morning

This year exactly 101 years to the day after the end of the First World War

Devils strike early, hang on for 2-1 win over Canucks

Vancouver now 0-8-3 in last 11 games versus New Jersey

Most Read