Payday Loan Eligibility & Disclosure

Who Can Get a Payday Loan in BC

• Age: you must be at least 19 years old — the age of majority in British Columbia. (BC Gov — Payday lenders: rules for business)
• Income source: the lender must verify your source of income. Payday lenders generally require proof of a regular income, a bank account and a permanent address before giving you a loan. (FCAC — Payday loans)
• One loan at a time: a lender may not issue a borrower more than one payday loan at a time, and may not issue a loan that would exceed 50% of your net paycheque for the loan period (also capped at $1,500). (BC Gov — Payday loans: rights and responsibilities)
• Chyto also runs its own checks: identity verification (KYC), income verification, and banking details.

Cost of Borrowing — BC Maximum

In British Columbia, the maximum a payday lender can charge is $15 per $100 borrowed (all-in, including fees and interest). For example, borrowing $500 can cost at most $75 in fees and interest. Because payday loans are short-term, this equates to an annual rate of roughly 400% on a bi-weekly loan — consider alternatives before borrowing. This $15 per $100 maximum took effect September 1, 2018 and remains the current BC maximum. (BC Gov News — tougher payday loan rules (2018); BC Gov — Payday loans: costs)

Your Rights as a Borrower

Under BC law, you have the right to:

• Review what the payday loan will cost, in clear and understandable language, in a credit agreement (BC Gov — Payday loans).
• Cancel and repay the payday loan, without penalty, within two full business days after receiving the loan. Under the Business Practices and Consumer Protection Act (BPCPA), Part 6.1, a borrower may cancel at any time before the end of the next day the lender is open for business following the first advance, or any longer prescribed period (the prescribed period in BC is two full business days). To cancel, you must give the lender the cancellation notice they provided and repay the amount of all advances. (BPCPA, Part 6.1 — Payday Loans (bclaws.gov.bc.ca); BC Gov — Payday loans)
• Repay early at any time, in full or in part, without penalty (BC Gov — Payday loans; BPCPA, Part 6.1).

Required Disclosure Documents

BC law requires payday lenders to give you a written loan agreement, signed and dated by you, that includes: the lender's name, address and licence number; the principal and term of the loan; the date and amount of each advance and each payment due; the total cost of credit and the APR; the rate of interest and all permissible charges; a statement that the loan is a "high-cost loan"; a statement of your cancellation rights and how to exercise them; and a copy of the agreement plus a cancellation notice form at the time you sign. (BPCPA, Part 6.1 — required loan agreement terms and disclosure)

How Payday Loans Are Regulated

• Payday lenders in BC must be licensed with Consumer Protection BC and display their licence wherever they offer loans. You can check a lender's licence before borrowing. (BC Gov — Payday loans)
• The governing statute is the Business Practices and Consumer Protection Act, SBC 2004, together with the Payday Loans Regulation. (BPCPA at bclaws.gov.bc.ca)
• Federally, the Financial Consumer Agency of Canada (FCAC) provides consumer information on payday loans; provinces and territories regulate payday lenders directly. (FCAC — Payday loans)

Questions or Complaints

Contact Chyto through our contact form. If you have a concern about a payday loan or lender in BC, you can contact Consumer Protection BC.