VANCOUVER, June 26, 2018 — On behalf British Columbia credit unions, Central 1 Credit Union (Central 1) congratulates the B.C. government on new rules that will help protect vulnerable consumers from excessive payday lending fees and predatory lending practices.
“The Province’s proposed measures to reduce and control cheque cashing fees and increase access to information will help protect B.C. consumers from unscrupulous lending practices,” said Karen McDonald, Director, Government Relations at Central 1. “These lenders are often in a position to exploit B.C.’s most vulnerable citizens, and B.C. credit unions have been longtime advocates to change the rules governing them.”
For several years, credit unions have worked closely with the provincial government to understand the nature of non-traditional lending in B.C. and its impact on susceptible consumers, such as those cashing social assistance cheques. Credit unions have recognized the need for payday loan alternatives and many have created products to assist members who would otherwise turn to these high-cost products.
Providing accessible financial services for their members is at the core of what credit unions do. B.C.-based Vancity was one of the first Canadian financial institutions to offer a sustainable alternative to payday loans. The Vancity Fair & Fast Loan™ looks at a borrower’s income, credit history and ability to make the payments. Its goal is to help people break out of the cycle of payday loans and establish a strong credit history.
For more information on the B.C. government’s announcement, please visit: https://news.gov.bc.ca/releases/2018PSSG0044-001273
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