How payday loans work in British Columbia
In British Columbia, payday loans are governed by Part 6.1 of the Business Practices and Consumer Protection Act and licensed by Consumer Protection BC. Lenders must display their licence number and give you a written agreement that states it's a high-cost loan.
Since January 1, 2025, a payday loan in British Columbia can cost no more than $14 per $100 borrowed, including every fee, under the federal Criminal Interest Rate Regulations. The loan can be up to $1,500 and can't run longer than 62 days.
How much you can borrow in British Columbia
A payday loan in British Columbia can be no more than 50% of your net pay for the pay period, up to the national maximum of $1,500. With take-home pay of $1,200 per pay period, the most you could borrow is $600.
What a payday loan costs in British Columbia
| You borrow | Maximum cost | Total to repay | APR on 14 days |
|---|---|---|---|
| $300 | $42 | $342 | 365% |
| $500 | $70 | $570 | 365% |
| $1,000 | $140 | $1,140 | 365% |
| $1,500 | $210 | $1,710 | 365% |
Your rights as a borrower in British Columbia
- Cancellation: You can cancel within two business days of receiving the money without paying the cost of borrowing.
- Repeat loans: You can only have one payday loan with a lender at a time, and rollovers are banned. If you take a third payday loan within 62 days, it must be repaid over two or three pay periods instead of in one payment.
- Late or missed payments: If a payment bounces, the lender can charge one dishonoured payment fee of up to $20. Charging you an upfront fee to get a loan is illegal in BC.
- Early repayment: you can repay early without a prepayment penalty.
- Disclosure: your written agreement must show the amount, the total cost in dollars, the APR and every due date before you sign.
- No extras: a lender can't require insurance or charge you anything upfront.
BC's one-loan-at-a-time rule and its instalment requirement for repeat borrowers are designed to stop the payday loan cycle before it starts. Lenders also can't sell you insurance or charge for cash cards.
Applying online from anywhere in British Columbia
You can apply for an online or e-Transfer payday loan from anywhere in the province, including Vancouver, Surrey, Burnaby, Richmond, Kelowna, Abbotsford, Coquitlam, Victoria, Kamloops, Nanaimo and Prince George. The same provincial rules apply whether you live in a large city or a small town, and whether you borrow online or at a store.
To apply, you'll need to be at least 19 (the age of majority in British Columbia), have had regular income for three months or more, and have an active Canadian bank account. See how it works for the full process.
Payday loans in BC cities
BC's payday loan rules are the same across the province, but local costs, jobs and free supports differ from city to city. Choose your city for a local guide.
How to check a lender's licence in British Columbia
Payday lenders in British Columbia are licensed and overseen by Consumer Protection BC. A legitimate lender will show its licence number on its website and in your loan agreement. If you can't find it, check the regulator's public list before you sign anything, and walk away from any lender that asks for money upfront.
If you're struggling to repay in British Columbia
Contact your lender before the due date and ask about a payment plan. A non-profit credit counselling agency can review your budget for free, and Consumer Protection BC can help if you believe a lender broke provincial rules. Our responsible lending guide lists more options.