Amendments to the Business Practices and Consumer Protection Act will take effect May 1, 2022 to regulate high-cost credit products, such as high-interest installment loans and lines of credit. These changes will help protect financially vulnerable British Columbians who use high-cost financial services to make ends meet.
Under the new regulatory framework, companies that offer high-cost credit products will require annual licensing and be overseen by Consumer Protection BC. This aligns with the approach for payday lenders, who are currently regulated by the province. Bringing this legislation into force fulfils commitments for stronger consumer protections and enhanced financial education to assist people in making important decisions. This oversight helps ensure that businesses understand and comply with these new requirements and that consumers are protected and can when using high-cost alternative financial services. A new Consumer Financial Education Fund will promote financial education for consumers and ensure compliance with BC consumer protection laws..