The Payday Credit Protection Insurance (CPI) is offered by GVR Management Limited. It covers the Late Interest Payments in the event the borrower loses his/her income on the basis of which the loan was based on. The CPI keeps the borrower’s credit account up to date with King Loans Ltd. by making the payments of the late interest for a period of up to one year from the date of loss of income or the payday loan issue date, whichever is later. CPI is charged at 3.5% to 4% of the loan amount. The late interest on a payday loan is 30% of the principal amount in British Columbia, Canada. Example, if a borrower takes out a payday loan of $1000, late interest on this amount would be $300 per annum. This amount will be covered by CPI as long as borrower meets the requirements set by GVR Management Limited.
The terms of CPI would be as follows:
1.CPI protection is valid for a single loan issued on the date shown at the bottom of this agreement.
2.CPI covers the late interest payments only and do not cover the principal amount of the loan or the fee associated with the payday loan.
3.Once approved, GVR Management Limited will make late interest payments directly to King Loans Ltd on the borrower’s account. All payments will be made monthly on the 2nd business day of the month.
4.The borrower can qualify by proving that they are not receiving the income on which the loan was based of and they have no other income to support the payments. The approval will be at the discretion of the GVR Management Limited being satisfied with the conditions being met by the borrower.
5.GVR Management Limited will be not be responsible for any late interest payments after the 12 month period from the qualification date (date of loss of income or payday loan issue date, whichever is later).
6.The CPI will keep borrower’s credit rating in good standing with King Loans Ltd. and will not have any effect on actual credit of the borrower for other loans or credits elsewhere.