Difference between revisions of "Direct Sales, Future Performance, and Time Share Contracts (11:V)"

11-30Under  s  347.1,  payday  loan  agreements  are  defined  and  are  exempted  from  s  347  provided  that  the following three conditions are met: i)the loan must be for $1500 or less and for 62 days or less; ii)the  person  must  be  licensed  or  specifically  authorized under  provincial  /territorial  law  to  enter into that payday loan agreement; and 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, B.C. 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 Codesection 347.1, as long as they follow the provincial requirements.  H.Remedies and Sanctions In addition to the remedies already mentioned that are available to consumers, the BPCPA provides for further sanctions: 1.Fines or Imprisonment Section 190 establishes a summary conviction offence with penalties of imprisonment up to one year and fines of up to $10,000 for individuals  and $100,000 for corporations, for any contravention of the BPCPA. 2.Investigation and Search Powers Part 10 gives the Director the power to investigate and request information where there are reasonable and probable grounds to believe that a person has contravened, is contravening, or is about to contravene the BPCPA or an order made under it.