(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

Council approved rezoning for Eddy at the Bridge development

Public hearing on Dec. 3 saw host of speakers both for and against the commercial development

What can $4 million get you in real estate in Chilliwack vs. other places in B.C.?

A 78-acre property with a large house – or you could get a condo in Vancouver or an estate mansion in 100 Mile House

Widespread concerns spur UFV to halt international enrolment growth

New target hopes to limit international students to 20% of all enrolment to give time to ‘catch up’

LETTER: Public safety ‘first and foremost consideration,’ says parole board

Board responding to article about Chilliwack halfway house

Lights Tour 2019 takes everyone on a sparkly ride across Chilliwack

The annual list of addresses compiled by CADREB for the 2019 Tour of Homes is almost ready

VIDEO: Boys help rescue Cariboo bear cub

The cub, weighing just 24lbs, has been taken to wildlife sanctuary in Northwest B.C. for the winter

Owners of hotels on Vancouver’s Downtown Eastside fight $1 expropriation in court

Vancouver City Council voted to expropriate the properties for $1 each in November

‘Things haven’t changed enough:’ Ecole Polytechnique anniversary prompts reflection

Fourteen women were fatally shot by a gunman at the Montreal school on Dec. 6, 1989

Bear raids freezer, gorges on Island family’s Christmas baking

Hungry bruin virtually ignored meat and fish, focused, instead, on the sweets

B.C. pharmaceutical company’s stocks double in value after successful lupus drug trial

More than 40 per cent of patients using voclosporin saw improvements in kidney function

Second warning on romaine lettuce from California region as another E. coli case reported

Two cases of E. coli have been reported in relation to the illness in the U.S.

Braille signs coming to TransLink bus stops in 2020

Transit authority says it’s the first to do so in Canada and the United States

CUPE issues 72-hour strike notice for SkyTrain

Local 7000 release states ‘parties are still bargaining’, union will have job action plan by Saturday

Abbotsford man was ‘unintended victim’ of 2018 fatal shooting, police say

Jagvir Malhi, 19, was gunned down while on his way to university

Most Read