The Consumer Protection BC found information that three payday loan lenders were using aggressive and illegal sales tactics to sell insurance products. These practices lead to $400,000 worth of refunds for consumers.
They also uncovered that two lenders mislead borrowers about loans and one lender did not provide borrowers with an adequate amount of time to repay the loans. The results of the investigation into that practice meant that over half of the payday loan lenders agreed to refund $475,000 to affected individuals – for a total of $875,000.
Regulatory Services Vice President Shahid Noorani said as the investigation broadened and deepened, investigators found many instances of these illegal practices in the whole industry. He said the last year has been spent on modifying the behavior that violates a person’s rights.
The Consumer Protection BC introduced stricter payday loan regulations in 2017 that included dropping the maximum charge of every $100 down from $23 to $17 and ensuring the interest rate was similar to those seen with credit cards.