The borrowing rates of payday loans will be lowered under regulations coming into effect tomorrow.
As of January 1st, the maximum allowable charge for payday loan in B.C. will drop from $23 to $17 for every $100 borrowed, making it the second-lowest rate in Canada.
Before 2009, charges for payday loans in B.C. were as high as $30 for every $100 borrowed.
Maple Ridge Councillor Tyler Shymkiw says the change is a positive step.
“Basically, this was something that was regulated by the federal government up until 2006 at which point they deregulated it and let the provinces deal with it and I think you’re going to see more and more provincial governments, and you’re seeing this across the country, try to address it, because it has an absolutely devastating effect on working class families.”
Shymkiw says the province needs to do more work to regulate short-term loans to protect lower income families.