Date Issued: April 18, 2018

File: SC-2017-003086

Type: Small Claims

Civil Resolution Tribunal

Indexed as: Kamloops 2011 Equities Ltd. dba Speedy Cash v. Power,

2018 BCCRT 138

Between:

Kamloops 2011 Equities Ltd. dba Speedy Cash

Applicant

And:

Nicholas Power

Respondent

INTRODUCTION

1.         This dispute involves a pay day loan.    The parties agree there was a signed loan agreement.  The respondent was unable to repay the money when it came due.

2.         The parties are self-represented.

JURISDICTION AND PROCEDURE

3.         These are the formal written reasons of the Civil Resolution Tribunal (tribunal). The tribunal has jurisdiction over small claims brought under section 3.1 of the Civil Resolution Tribunal Act (Act). The tribunal’s mandate is to provide dispute resolution services accessibly, quickly, economically, informally, and flexibly. In resolving disputes, the tribunal must apply principles of law and fairness, and recognize any relationships between parties to a dispute that will likely continue after the dispute resolution process has ended.

4.         The tribunal has discretion to decide the format of the hearing, including by writing, telephone, videoconferencing, email, or a combination of these. I decided to hear this dispute through written submissions because I find that there are no significant issues of credibility or other reasons that might require an oral hearing.

5.         The tribunal may accept as evidence information that it considers relevant, necessary and appropriate, whether or not the information would be admissible in a court of law. The tribunal may also ask questions of the parties and witnesses and inform itself in any other way it considers appropriate.

6.         Under tribunal rule 126, in resolving this dispute the tribunal may make one or more of the following orders:

a.      order a party to do or stop doing something;

b.      order a party to pay money;

c.      order any other terms or conditions the tribunal considers appropriate.

ISSUE

7.         The issue is whether I should order the applicant to repay the claimed amount of $1,159.03 plus applicable interest.

EVIDENCE AND ANALYSIS

8.         A January 3, 2018 signed loan agreement describes the applicant’s loan of $932.50 to the respondent. 

9.         The loan agreement provides that the respondent was required to repay the principal, plus applicable fees and interest, on February 10. 2017.

10.      It is undisputed that the contract is valid and that the respondent was unable to repay the loan on time.

11.      The respondent says that because the applicant tried to take the money out of his account on nine occasions, he was left with extra bank fees.

12.      On the question of the extra bank fees,

a.      the signed loan agreement provides that the respondent either gives the applicant post-dated cheques or authorizes debits of his account to repay the loan by February 10, 2017;

b.      the applicant provided undisputed evidence of file notes recording its contact with the respondent, in which he also authorizes the respondent to attempt debit his bank account, on several different dates.

13.      Given the terms of the valid loan agreement and the additional evidence of the respondent authorizing the applicant to debit his account, I find that the respondent cannot claim a set-off for bank fees associated with attempted debits of his bank account relating to the loan repayment.

14.      Given the valid loan agreement, I find the applicant is entitled to the amounts claimed and applicable interest.

15.      The loan agreement provides that these amounts are payable by the respondent:

(a)    principal $932.50

(b)    cost of borrowing: $158.52

(c)    loan protection fee (insurance): $48.01

(d)    dishonoured payment fee: $20.00

16.      The loan agreement also contains a 30% annual interest charge on overdue payments, to be calculated daily on the principal amount.  I find the interest due from the time of the loan agreement to the date of application is $99.15.

17.      Interest from the date of the application to the date of this decision, a period of 268 days, at 30% per the loan agreement, is $205.40.

18.      Under section 49 of the Act, and tribunal rules, the tribunal will generally order an unsuccessful party to reimburse a successful party for tribunal fees and reasonable dispute-related expenses. I see no reason in this case not to follow that general rule. I find the applicant is entitled to reimbursement of $150.00 in tribunal fees, as claimed.  The applicant did not claim dispute-related expenses.

ORDERS

19.      Within 7 days of the date of this order, I order the respondent to pay the applicant a total of $1,613.58, broken down as follows:

a.     $1,159.03 as reimbursement for the loan principal, borrowing fee, loan protection fee and dishonoured payment fees;

b.     $304.55 in interest per the loan agreement; and

c.      $150.00 in tribunal fees.

20.       The applicant is entitled to post-judgment interest, as applicable.  

21.      Under section 48 of the Act, the tribunal will not provide the parties with the Order giving final effect to this decision until the time for making a notice of objection under section 56.1(2) has expired and no notice of objection has been made.  The time for filing a notice of objection is 28 days after the party receives notice of the tribunal’s final decision.

22.      Under section 58.1 of the Act, a validated copy of the tribunal’s order can be enforced through the Provincial Court of British Columbia.  A tribunal order can only be enforced if it is an approved consent resolution order, or, if no objection has been made and the time for filing a notice of objection has passed. Once filed, a tribunal order has the same force and effect as an order of the Provincial Court of British Columbia.