British Columbia Payday Loan Bill Halted, Lender Applauds Move
By Paul RizzoPayday Loan Writer
“The legislation does not strike a fair balance between consumer protection and fostering a competitive lending environment. In fact, the bill as presently drafted is bad for consumers, as it will restrict the range of product offerings available to them.”
- Gordon J. Reykdal, Chairman and CEO, Rentcash
Those are the words of a British Columbian payday loan provider, opposing the possible legislation regulating quick cash loans.
And it looks as if, at least for now, lawmakers in the Western Canadian province concur with his assessment.
Canadian instant payday loan provider Rentcash applauded the Government of British Columbia for its decision not to advance Bill 27 - The Payday Loan Act - as the legislative session ended.
“Many operators in the online payday advance industry - including Rentcash - were disappointed with several features of Bill 27 about which they were not consulted prior to introduction of the Bill,” said Reykdal.
Along with many other providers of fast cash, he believes that payday loans are best regulated by lenders themselves - by setting fair criteria and enforcing existing laws.
“The government now has the time to consult directly with industry operators and should amend the Bill based on their input.”
“There is precedent within Canada’s federal and provincial legislatures for broad stakeholder consultations following first reading of a Bill,” the cash loan provider said.
“The government should act on this precedent and reach out to all of its stakeholders before advancing Bill 27 in the next legislative session.”
Rentcash currently operates 62 payday advance outlets in British Columbia under The Cash Store and Instaloans banners.
The payday loan agency is a leading advocate of consumer protection measures for the payday advance industry, and was one of the first firms in Canada to ax rollovers from its product mix.
