VANCOUVER ISLAND

B.C. to reduce maximum charge on payday loans

The Canadian Press Published Wednesday, September 21, 2016 11:24AM PDT Last Updated Wednesday, September 21, 2016 11:41AM PDT

CTV Vancouver: Payday loans on the rise in B.C.

File photo -The maximum allowable charge for a payday loan in B.C. will drop from $23 to $17 for every $100 borrowed, starting Jan. 1, 2017.

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VANCOUVER - The British Columbia government is taking steps to cut the interest rates charged on so-called payday loans.

The maximum allowable charge for a payday loan in B.C. will drop from $23 to $17 for every $100 borrowed, starting Jan. 1, 2017.

The Ministry of Public Safety and Solicitor General says the changes mean B.C.'s borrowing rates for the high-cost, short-term loans will be the second-lowest in Canada.

Prior to 2009, charges for payday loans in B.C. were as high as $30 for every $100 borrowed.

The ministry says in a news release that regulators will also consult with credit counsellors, advocacy organizations, loan providers and others as the province seeks improved protection for consumers who rely on payday loans.

The 30-day consultation will examine issues ranging from consumer education and information, to development of innovative lower-cost loans that could shift consumers away from more expensive options.