(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

ARTS AROUND: Crafters wanted for annual Mistletoe Market

The Rollin Art Centre’s annual Christmas Market is just around the corner

Alberni Charity Golf Classic donates $60K to five charities

BC Children’s Hospital, four Alberni-based groups split proceeds

Stone Poets bring global message to Char’s Landing

Modern folk trio from Vancouver creates music that matters.

The Nutcracker returns to Port Alberni

Port Alberni, Vancouver Island and professional dancers bring the holiday classic to life

Former Port Alberni grad pitches to Dragons’ Den

Justin Atterbury is the co-owner of Taynton Bay Spirits in Invermere, B.C.

VIDEO: Disney Plus gives Canadians a streaming platform that nearly matches U.S. version

The Walt Disney Company’s new subscription platform unveiled a comprehensive offering of nearly 500 films

Campbell River RCMP investigating after two stabbing incidents Tuesday night

Police are treating each case separately and have one person in custody

Nearly half of B.C. drivers nervous in winter conditions: BCAA

‘Wait and see’ approach common practice for 32% of B.C. motorists

Autism support dog refused bus access for being a ‘pet’

B.C. grandmother files complaint with TransLink, calls for better awareness of service dogs

Students plan rally at B.C. education minister’s office as district strike enters third week

Saanich School District students plan to rally outside Rob Fleming’s constituency office in Victoria

Sex assault charge stayed against Port Moody mayor

Rob Vagramov completed an alternative measures program, special prosecutor said

73% of B.C. residents agree with a temporary ban on vaping products: poll

54% say they would not date someone who vapes, Research Co. poll suggests

B.C.’s 13-cent gasoline gap still a mystery, Premier John Horgan says

NDP plans legislation this month, seeks action from Justin Trudeau

Former Vancouver Canucks player suing financial advisors for negligence

Jason Garrison claimed his advisors failed to take his circumstances into account

Most Read