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Difference between revisions of "Direct Sales, Future Performance, and Time Share Contracts (11:V)"
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Direct Sales, Future Performance, and Time Share Contracts (11:V) (view source)
Revision as of 05:22, 13 August 2016
, 05:22, 13 August 2016→G. Regulation of Payday Lenders and Criminal Rate of Interest
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*iii) the province must be designated by the Governor in Council (which will happen in the province has adequate measures to protect recipients of payday loans) | *iii) the province must be designated by the Governor in Council (which will happen in the province has adequate measures to protect recipients of payday loans) | ||
''Payday Loans Regulation'', | ''Payday Loans Regulation'', BC Reg 57/2009 s 2 designates payday lenders as a “designated activity” under s 142 of the ''BPCPA''. Section 143 requires anyone who participates in a designated activity to carry a license. A payday lender must carry a separate license for each operating location. The regulations also set limits on the amount of interest that can be applied, mirroring s 347 of the ''Criminal Code''. The maximum amount that can be charged on a payday loan is 23% of the principal. Annual interest on the outstanding principal cannot exceed 30%. In addition, a payday loan cannot exceed 50% of the borrower’s net pay. Thus, payday loans in BC are permitted under ''Criminal Code'' section 347.1, as long as they follow the provincial requirements. | ||
== H. Remedies and Sanctions == | == H. Remedies and Sanctions == | ||
