New limits on fees for cashing cheques and high-cost loans will take effect on Sept. 1 in British Columbia.

Solicitor General Mike Farnworth says in a statement the changes tighten the rules for payday-loan businesses and aim to protect people from paying high fees to cash cheques and borrow money.

Farnworth says the changes will help some of B.C.’s most vulnerable people who use non-traditional lenders and credit providers to cash social assistance or disability cheques.

The changes that go into effect Sept. 1 include: lowering the maximum fee to $15 for every $100 borrowed and capping the fee for cashing a social assistance or disability cheque at $2, plus one per cent of the value of the cheque, up to a maximum of $10.