You First: Provincial Gov’t Wants Federal to Act Against Payday Loans
By J.J. CameronPayday Loan Writer
The British Columbia government is ready to regulate the payday loan industry. It's anxious to get started … but wants the federal government to act first.
Solicitor-General John Les told The Province that Ottawa needs to change the Criminal Code to enable B.C. to bring forward legislation.
"We are ready to go, as soon as the federal government delegates the appropriate authority," said Les. "Until that time, there is very little the province can do. Clearly, we want to tighten up the regulation of the payday loan industry so it is more transparent."
Yesterday, NDP MLA Rob Fleming (Victoria-Hillside) introduced a private member's bill into the B.C. Legislature in order to regulate the payday advance field. The Payday Lending Act sets a number of rules for the industry. It's meant to boost consumer rights.
"It is not uncommon for consumers to pay in excess of 300 percent interest on a one- or two-week [payday] loan," said Fleming."I certainly hope the Campbell government will support bill."
The proposal includes:
- A ban on the taking of security, including assignment of wages
- Plain language rules so the cash advance lender must clearly inform the borrower
- Lender to post signs setting out the cost of credit for a payday loan
- Borrowers having the right to cancel the quick cash loan within 48 hours of the first advance
- The right to a refund if the borrower was overcharged
