Payday loans in British Columbia: BC rules and your cancellation rights
BC’s payday loan rules look much like Ontario’s at first glance: the same cost cap, the same $1,500 ceiling. The difference is in the detail. BC names specific lender errors that keep your right to cancel open long after day two, and it caps what a missed payment can cost.
Reviewed November 2026 by the Jessica’s House editorial team against federal and provincial lending rules. About 4 minutes to read.
Short answer
Payday loans in British Columbia are licensed by Consumer Protection BC. The cost is capped at $14 per $100, and a loan can be no more than 50% of your net income for the loan term, up to $1,500, for no longer than 62 days. You can cancel within two business days for free, and at any time if the lender didn’t follow certain disclosure rules.
| Cost cap | $14 per $100, including all interest and fees |
|---|---|
| Loan limit | 50% of your net income during the loan term, up to $1,500 |
| Longest term | 62 days |
| Cooling-off period | 2 business days after you receive the first advance |
| Other loans | No second payday loan from the same lender while one is outstanding |
| Default charges | Interest of up to 30% a year on the overdue amount, plus one $20 dishonour fee |
| Not allowed | Security on your property, guarantors, or wage assignments |
How your BC borrowing limit is worked out
BC looks at the income you’ll receive during the term of the loan, not your annual salary. If your loan runs two weeks and $1,300 lands in your account in that time, the most you can borrow is $650. If you’re paid monthly and the loan runs a month, the limit is half that month’s take-home pay.
Example from Kelowna
A server is paid every two weeks, about $1,100 after tax. Her limit is $550. She borrows $400 for a dental bill. The most it can cost is $56, and $456 comes out on payday.
When you can cancel a BC payday loan after the two days
On top of the two-business-day cooling-off period, BC lets you cancel at any time, without penalty, if the lender did any of these:
- Didn’t disclose the total cost of borrowing, the annual interest rate or your right to cancel
- Left required information out of the agreement
- Didn’t give you a copy of the signed agreement
Other breaches, such as charging over the cap or lending without a licence, can be reported to Consumer Protection BC, which can order refunds.
To cancel, tell the lender in writing and return the principal. The lender has to refund any cost of borrowing it collected.
Free help in British Columbia
- bc211: free, confidential referrals to food, housing and financial help, by phone, text or online.
- BC Hydro’s Customer Crisis Fund: grants for eligible residential customers at risk of disconnection.
- The Credit Counselling Society: a BC-based non-profit offering free counselling and debt management plans.
- Hardship assistance from the provincial income assistance program, for urgent needs.
Questions people ask
What is the maximum payday loan in BC?
$1,500, or 50% of your net income during the loan term, whichever is less.
How much does a $300 payday loan cost in BC?
At most $42, so you repay $342. That’s the $14 per $100 cap, which includes all interest and fees.
Can a BC lender take my car or wages if I don’t pay?
No. BC payday lenders can’t take security on your property, ask for a guarantor, or take an assignment of your wages. They can still pursue the debt through collections or the courts.
How do I check a BC payday lender’s licence?
Search the licensee directory on Consumer Protection BC’s website. Every payday lender serving BC residents, online or in a store, needs that licence.
Apply with BC-licensed lenders
Your cost and due date in writing before you sign, and two business days to change your mind.