Canadian Payday Loan Firms Call for Regulations
By J.J. CameronPayday Loan Writer
This is unusual.
The Canadian government has stated that any crack down on payday loans is NOT near the top of its priority list. Meanwhile, companies themselves in that business are calling for changes.
Indeed, the Canadian Payday Loan Association renewed its plea yesterday for the federal government to introduce legislation this fall that would give provinces the authority to regulate the cash advance industry.
The CPLA, which represents 850 of the 1,350 stores offering payday loans across Canada, urged Justice Minister Vic Toews and other members of Parliament to make the bill a top priority now that six of 10 provinces have asked Ottawa for the ability to regulate typical and faxless payday loan providers.
"We just want to make sure that the legislation gets introduced quickly and passed through Parliament quickly because it is very important for consumers and for businesses," said CPLA president Michael Thompson.
Toews has said he plans to introduce legislation that would let the provinces set and police interest rates.
The Ottawa Sun reports that he is working with Industry Minister Maxime Bernier on such no fax cash loan legislation and plans to introduce it sooner rather than later, a spokesman said yesterday. The federal Criminal Code currently limits annual interest rates to 60%, but that limit has rarely been imposed on short-term loans.
However, not everyone supports the proposed reforms. The Consumers' Association of Canada says the changes will create a "hodgepodge" of regulations across the country, leaving consumers in a "worse position."
"We feel that consumers are adequately protected by that law (the Criminal Code) and we suggested that the federal government enforce it," said CAC president Bruce Cran.
It's certainly a different sort of battle in Canada over the issue of cash loans than it is in the U.S.
