License
- A payday lender must prominently display the licence in the location for which the licence is issued
- If the payday lender does business by means of the internet, the payday lender must display the licence number and other identification, in a form approved by the director, prominently at, or near, the top of the introductory page of the website for British Columbia borrowers
Cost of a Payday Loan
- The maximum amount of a payday loan is $14 for every $100 borrowed.
- If you borrowed $200, it would cost $28, and you would pay back $228.
- If the loan is not paid on time, overdue interest of 30% per year can be charged.
- A fee of $20 dollars can be charged for an NSF(bounced payment).
Borrowing Rules
- A payday loan cannot be more than $1,500.
- A payday lender must not issue a payday loan in excess of 50% of the borrower’s net pay.
- A payday loan cannot be more than 62 days.
Split Payments
A payday lender who enters into a third payday loan agreement in 62 days must be offered split payments.
- If you are paid weekly, biweekly, or twice monthly, you can pay over 3 equal payments.
- If you are paid monthly, you can pay over 2 equal payments.
Prohibited Practices
A Payday lender must not:
- Require or request that the borrower insure a payday loan.
- Ask for collateral as security for a payday loan.
- Require or accept an assignment of wages.
- Charge any fees other than the ones listed above under “Cost of a payday loan.”
- Give another payday loan if you already have an outstanding loan with us.
- Require or use a borrower’s personal information for any purpose other than providing a payday loan.
- Make a payday loan contingent on the supply of other goods or services.
- This rule means a payday lender can’t force you to buy something else or use another one of their services as a condition for getting a payday loan.
- For example, they can’t say, “We’ll give you the $100 loan, but only if you also sign up for our monthly credit monitoring service.” Getting the loan has to be a separate decision from buying anything else they might offer.
Rollovers
There are two types of rollovers, and neither one is allowed.
- Imagine you have a payday loan due. Instead of paying it back, you ask the lender to give you more time. But for that extra time, you are charged more fees on top of the overdue interest.
- Imagine you have a payday loan due. You ask the payday lender to give you a second loan. The lender agrees, but takes that money and uses it to pay off the first loan.
Discounting a Payday Loan
“Discounting a payday loan” refers to a practice where the lender deducts the fees or interest charges before giving you the principal loan amount.
Here’s how it works:
- You need: Let’s say you need to borrow $300.
- The lender’s fee: The lender charges a fee, for example, $42 for the two-week loan.
- The “discount”: Instead of giving you $300 and then expecting you to repay $342, they “discount” the loan by deducting the $45 fee upfront.
- What you receive: You would only receive $258 ($300 – $42).
- What you repay: You are still obligated to repay the full $300 on your next payday.
Why is this called “discounting”? It’s called discounting because the cost of borrowing (the fee) is taken “off the top” or “discounted” from the principal amount before you receive it.
Fast Payday Loans in British Columbia — On Your Terms
When life throws a curveball, like an unexpected expense or a much-needed chalet weekend between paycheques, Loan Express is here to help. We offer fast, easy-to-understand payday loans designed to support British Columbians when they need it most.
Why BC Borrowers Love Loan Express
- Quick Online Approvals: No need to wait days. Apply and get approved fast, no matter the time of day. Once you’re approved, you’ll get your e-transfer within 2 minutes.
- Transparent and Straightforward: You’ll know exactly what you’re paying and when.
- Designed for Real Life: Whether you’re in Vancouver, Surrey, Kelowna, or anywhere in BC, we make the process smooth and stress-free.
We Keep It Simple
At Loan Express, we don’t tie payday loans to unnecessary extras or confusing fine print. Everything from your loan amount to your repayment plan is laid out clearly. Whether you’re facing an urgent bill or just need a little breathing room, we make getting a short-term loan as easy as it should be.
Apply now to see why more BC borrowers choose Loan Express for fast, flexible payday loans that work for their real life.