Canadian Provinces To Control Payday Loans
By John MitsudaPayday Loan Writer
Winnipeg, Canada — After months of lobbying, the Canadian federal government has agreed to give the provinces the power to crackdown on the payday loan industry.
Amendments will be made to the criminal code this fall that gives provinces the right to enforce maximum interest raes and fees.
The Criminal Code currently limits interest rates to a maximum of 60 per cent per year. But Greg Selinger, Manitoba Finance Minister, and other provincial ministers have complained that the law is rarely enforced. Thus, the no faxing payday loan agencies are becoming more and more popular in the province.
Mr. Selinger is also planning new provincial legislation this fall that will forbid loan companies from offering so-called "rollover" loans, where a customer takes out a second loan to pay off the first and the interest is compounded.
March 6th, 2006 at 2:08 pm
[…] Smith’s proposed class action suit now moves forward in a case that is being closely watched by payday loan borrowers in other proposed class actions against payday lenders across Canada, as well as by lawmakers who have been looking at ways to regulate the business. […]
March 15th, 2006 at 10:05 am
[…] Here’s what the bill proposes: The typically exorbitant fees charged by payday loan companies will be capped and extra charges for renewing a loan will be prohibited under new legislation introduced by the province yesterday to control this industry. […]