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FYI,
All borrowers have certain legal rights to be told the cost of borrowing up front (disclosure) so that the borrower knows what they are getting into.
There is a legal obligation for the lender to provide this information (eg interst rate, how interest is calculated ....) before the loan is given.
Conveniently the the Government has exempted student loans from this requirement.
B.C. Reg. 273/2004
O.C. 629/2004 |
Deposited June 18, 2004
effective January 1, 2006 |
Business Practices and Consumer Protection Act
DISCLOSURE OF THE COST OF
CONSUMER CREDIT REGULATION
Exemptions
18
(2) Part 5 of the Act does not apply to the following:
(c) a loan made under the British Columbia Student Assistance Program or under the Canada Student Financial Assistance Act or the Canada Student Loans Act;
http://www.qp.gov.bc.ca/statreg/reg/B/273_2004.htm - http://www.qp.gov.bc.ca/statreg/reg/B/273_2004.htm
FYI Part 5 of the Business Practices and Consumer Protection Act
deals with the requirement for lenders to disclose all the costs of credit
http://www.leg.bc.ca/37th5th/3rd_read/gov02-3-pt05.htm#part05 - http://www.leg.bc.ca/37th5th/3rd_read/gov02-3-pt05.htm#part05
Students should have the same rights as other borrowrs. This is crazy that the gov exempted itself from this requirement.
There would be lower default rates if borrowers were given the correct and complete information up front.
Lets hope the gov can be convinced to allow students to be told the costs of borrowing just like other borrowers.
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