British Columbia High-Cost Credit Rules Come Into Effect On May 1, 2022

On May 1, 2022, British Columbia will become the fourth Canadian province (along with Alberta, Manitoba and Quebec) to regulate high-cost credit products. After that date, there will be additional disclosure requirements and consumer rights for consumer credit products with interest rates above 32%, along with licensing requirements for lenders offering such products.

The new high-cost credit rules in British Columbia are set out in the Business Practices and Consumer Protection Act (pending amendments here) and the High-Cost Credit Products Regulation. The rules apply in relation to credit products for personal (not business) purposes with an annual percentage rate ("APR") of 32% or more. Importantly, the high-cost credit rules do not apply in relation to a "credit sale" (sale of a product in which the purchase is financed by the seller or manufacturer of the product or by an associate of the seller or manufacturer) or a consumer lease. Further, the rules do not