(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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

UPDATED: Indigenous youth occupy B.C. Legislature steps amidst court injunction

Police negotiating with people gathered in support of some of the Wet’suwet’en hereditary chiefs

Saanich councillor asks District to stand in solidarity with Wet’suwet’en

Coun. Nathalie Chambers duplicates ‘tried and true motion’ passed by Victoria in January

‘Not the monster everyone thinks’: Sister of human-trafficking suspect speaks out

Trish Kelly’s brother was one of four Vancouver Island residents arrested last month in Saskatchewan

Crews respond to house fire in Langford Monday night

Fire near Glen Lake Road and Haslam Avenue

Oak Bay ups deer management budget to $96,100 for 2020

Provincial grant approved for deer contraception program

VIDEO: B.C.’s seventh coronavirus patient at home in Fraser Health region

Canada in ‘containment’ as COVID-19 spreads in other countries

B.C. takes over another Retirement Concepts senior care home

Summerland facility latest to have administrator appointed

RCMP pull office from Wet’suwet’en territory, but hereditary chiefs still want patrols to end

Chief says temporary closure of field office not enough as Coastal GasLink pipeline dispute drags on

Prescription opioids getting B.C. addicts off ‘poisoned’ street drugs

Minister Judy Darcy says Abbotsford pilot project working

Teck CEO says Frontier withdrawal a result of tensions over climate, reconciliation

Don Lindsay speaks at mining conference, a day after announcing suspension of oilsands project

Okanagan man swims across Columbia River to evade Trail police

RCMP Cpl. Devon Reid says the incident began the evening of Thursday, Feb. 20

‘Hilariously bad’: RCMP looking for couple with forged, paper Alberta licence plate

Mounties said the car crashed when it lost a wheel but the duo ran away as police arrived

Most Read