(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

North Island College hosting nursing info session

Info sessions will take place Monday, Jan. 27 at Port Alberni and Campbell River campuses

Photographer captures Port Alberni personalities in black and white portraits

Meet John Douglas, Courtney Naesgaard in double exhibit Jan. 18 at Rollin Art Centre

Alberni Valley Community Foundation opens grant application process for 2020

Nearly $30K available for Port Alberni-based charities

Stray cat with ‘serious burns’ recovering at Alberni SPCA

The BC SPCA’s Alberni-Clayoquot branch is asking members of the public for help with medical costs

B.C. government puts kibosh on drag racing at Alberni Valley Regional Airport

AVDRA was hopeful for a three-year temporary contract to race at the airport

‘Like an ATM’: World’s first biometric opioid-dispensing machine launches in B.C.

First-of-its-kind dispensing machine unveiled in the Downtown Eastside with hopes of curbing overdose deaths

Canucks extend home win streak to 8 with 4-1 triumph over Sharks

Victory lifts Vancouver into top spot in NHL’s Pacific Division

BC Green Party leader visits northern B.C. pipeline protest site

Adam Olsen calls for better relationship between Canada, British Columbia and First Nations

‘Extensive’ work planned at Big Bar landslide ahead of salmon, steelhead migration

Fisheries Minister Bernadette Jordan visited the site of the slide from June

B.C. society calls out conservation officer after dropping off bear cub covered in ice

Ice can be seen in video matted into emaciated bear cub’s fur

Royal deal clears way for Harry, Meghan part-time Canada move: experts

Keith Roy of the Monarchist League of Canada said the deal is exactly what Harry and Meghan asked for

Horgan cancels event in northern B.C. due to security concerns, says Fraser Lake mayor

The premier will still be visiting the city, but the location and day will not be made public

B.C. landlord sentenced to two years in jail for torching his own rental property

Wei Li was convicted of intentionally lighting his rental property on fire in October 2017

Most Read