UBCM Executive Endorses Payday Loan Regulations

The UBCM Executive has endorsed referred Resolution 2015-B122, Payday Loan Regulations. The resolution calls on the provincial government to amend the Payday Loans Regulation section of the Business Practices and Consumer Protection Act to reduce the maximum fee percentage and interest rate that lenders may receive.

The resolution also calls on the provincial government to require payday lenders to offer instalment-based repayment options, as well as prohibit the issuing of more than one loan in the same week to the same applicant.

Following the 2015 UBCM Convention, the Executive considered a number of referred resolutions requesting UBCM action. With no existing UBCM policy on the matter of payday loans, the resolution was referred to the Community Safety Committee for consideration. Over the past eight months, the Committee conducted additional research, published an article outlining local government best practices to regulate payday lenders, and consulted Consumer Protection BC regarding the issue.

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