A new report shows a sharp increase in the number of British Columbians using so-called payday loans — short-term loans for small amounts of cash with the term set in relation to the borrower’s next payday.
Usage is up nearly 60% in B.C., according to a new report released by the Vancity credit union.
It found more than 198,000 people used payday loans in 2014 — a 58% increase compared to 2012.
The report says the industry is booming. Vancity is recommending provinces standardize payday lending legislation, and is encouraging banks to improve access to small-dollar loans.
Most users say they need the emergency cash to pay for necessities.
Also of note is that the report found most pa- loan users in B.C. are employed and have completed post-secondary education.