2-year investigations report $ 900,000 in payday loan customer repayments – Abbotsford News
A two-year investigation brought in nearly $ 900,000 to borrowers unfairly targeted for payday loans
Consumer Protection BC had found data showing that three payday lenders reported “unusually high sales of credit insurance” in early 2017.
Over the next two years, a multi-agency investigation found that lenders’ “aggressive and deceptive” sales of insurance products had their borrowers entitled to nearly $ 400,000 in repayment.
Consumer Protection BC discovered that two of the lenders were misleading borrowers and one was not giving them enough time to repay their payday loans
The investigation led more than half of the province’s payday lenders to agree to repay approximately $ 475,000, for a total of $ 875,000 for affected customers.
“As we widened this investigation, we found that the same types of illegal activity were prevalent in the industry,” said Shahid Noorani, vice president of regulatory services.
“We spent the last year correcting lending behaviors that violated the rights of borrowers.”
The province tightened payday loan regulations in early 2017, bringing the maximum charge per $ 100 borrowed to $ 17, down from $ 23 and about the same as average credit card interest rates.