Date Issued: November 23, 2018

File: SC-2018-000432

Type: Small Claims

Civil Resolution Tribunal

Indexed as: Kelwood Financial Services Inc. DBA Speedy Cash v. Burgess,
2018 BCCRT 756

Between:

Kelwood Financial Services Inc. DBA Speedy Cash

APPLICANT

And:

Amanda Burgess

RESPONDENT

INTRODUCTION

1.      The applicant, Kelwood Financial Services Inc. DBA Speedy Cash, says the respondent, Amanda Burgess, did not pay back a loan issued on July 1, 2017. The respondent seeks an order for payment of $607 for the loan, plus contractual fees and 30% annual contractual interest.

2.      The applicant is represented by an employee, Tammy Dyck. The respondent is 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 relationships between parties that may continue after the dispute resolution process has ended.

4.      The tribunal may decide the format of the hearing, including by writing, telephone, videoconferencing, or a combination of these. I find that I can fairly resolve this dispute by writing based on the documents and written positions before me because 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 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 order a party to do or stop doing something; order a party to pay money; or order any other terms or conditions the tribunal considers appropriate.

ISSUE

7.      Is the applicant entitled to $607.00 for the outstanding loan, plus fees and 30% annual contractual interest?

EVIDENCE AND ANALYSIS

8.      The applicant bears the burden of proof on a balance of probabilities. I have commented upon the evidence and submissions only to the extent necessary to give context to these reasons.

9.      The parties’ loan agreement signed on July 1, 2017 describes the applicant’s $607 loan to the respondent.

10.   The loan agreement provides that the respondent was required to repay the principal, plus applicable fees and interest, on July 7, 2017.

11.   The loan agreement provides that the following amounts are payable by the respondent:

a.    principal: $607

b.    finance charge: $103.19

c.    loan protection fee (insurance): $31.25

d.    dishonoured payment fee: $20

12.   It is undisputed that the contract is valid and that the respondent was unable to repay the loan on time. The applicant tried 8 times to withdraw the loan repayment amount from the respondent’s bank. The respondent says that she remains unable to repay the loan as she is presently homeless and unemployed.

13.   I acknowledge that the respondent’s circumstances are unfortunate.  However, given the valid loan agreement, I find that the applicant is entitled to the amounts claimed and applicable interest.

14.   The loan agreement also contains a 2.5% monthly interest charge on overdue payments, to be calculated daily on the principal amount. The applicant submits this amounts to 30% annual interest. I find the interest due from the repayment date to the date of the application, a period of 194 days, is $97, as claimed. Additional contractual interest to the date of this decision equals $154.66.

15.   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 $125.00 in tribunal fees, as claimed.  The applicant did not claim dispute-related expenses.

ORDERS

16.   I order that within 14 days of this decision, the respondent pay the applicant a total of $1,138.10, broken down as:

a.     $761.44 for debt,

b.    $251.66 in contractual interest at 30% per year, and

c.     $125 in tribunal fees.

17.   The applicant is also entitled to post-judgment interest under the Court Order Interest Act.

18.   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.

19.   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.