Credit Given to Government for Quick Payday Loan Law
By Paul RizzoPayday Loan Writer
The Canadian Payday Loan Association (CPLA) recently credited the federal government for moving swiftly to allow provinces the authority to regulate the cash advance industry.
Bill C-26 was approved by the Industry Committee yesterday before the House of Commons rises for the Christmas break today.
The CPLA says the new law will balance strong consumer protection with a viable industry by giving authority to provinces to regulate the faxless payday loan industry as long as they introduce legislation to protect consumers and set a clear maximum on the cost of borrowing.
In November 2006, the provinces of Manitoba and Nova Scotia passed legislation to regulate payday lending and will be setting the maximum permissible fees early in 2007.
The governments of British Columbia, Alberta, Saskatchewan and New Brunswick have all confirmed their intent to introduce similar regular and online payday advance legislation early in 2007.
“We have seen a big push this fall to balance strong consumer protection with the need for a viable industry,” said Stan Keyes, president of the CPLA, in a news release. “In the Canadian industry, there are two types of players - those who are serious about consumer protection and those who are only interested in gouging consumers and lining their own pockets. We need to put the worst players out of business so the best industry leaders can provide this needed service at reasonable rates.”
Keyes also expressed disappointment with the Consumers Association of Canada (CAC). The CAC has called on the government to stop all efforts to regulate the quick cash loan industry.
“Manitoba - an NDP government - was the first to ask the feds to let them regulate this industry,” said Keyes. “British Columbia, Alberta, Saskachewan, New Brunswick and Nova Scotia have all stepped up and called for the authority to regulate. The federal Conservatives, Liberals and NDP want regulation. Payday loan customers support regulation. Canadians writ large support regulation. Even the leaders in the payday loan industry want regulation. I’m very concerned that the CAC is totally out of step with the consensus on this issue.”
Upwards of 2 million Canadians use payday loans every year. The CPLA represents 500 of the 1,350 stores operating in Canada today.
