"Interest"ing Overdraft Charge Decision – Criminal Rates Of Interest Class Action Successful At Summary Trial

The BC Court of Appeal recently dismissed the appeal in Bodnar v. Community Savings Credit Union, where the appellants attempted to overturn a declaration made after a summary trial application that fees they charged customers in excess of $5, in respect of overdraft charges, constituted "interest" for the purposes of s. 347 of the Criminal Code, either in whole or in part.

The Court of Appeal held that the trial judge was correct in how she analyzed the relationship between the borrower and lender, and correct in her focus on the effect of the fee on the borrower (rather than intent of the lender), consisting with binding authority.

The decision reviews the meanings of "interest" and "overdraft charge", within the context of s. 347 the Criminal Code.