Canadian Payday Loan Association: Set Cash Advance Caps
By Paul RizzoPayday Loan Writer
The Canadian Payday Loan Association is calling on provincial governments to set the maximum allowable charges and fees for regular and online payday loans at $20 per $100, or an equivalent maximum.
The association says the move is expected to divide and more clearly differentiate the 23 association members from the 60 perecent of payday advance lenders who refuse to abide by a strict code of best-business practices.
The federal government has proposed a new law that would allow provinces to regulate the industry if they introduce specific consumer protection legislation and set caps on fees and charges attached to payday loans.
Association president Stan Keyes says the move should serve as a wake up call for supposedly low cost payday loan lenders that are not serious about providing services at reasonable prices and “only care about lining their pockets by gouging consumers.”
Keyes says any payday lender claiming they cannot operate with a $20-per-$100 cap in place is not serious about protecting consumers and should be shut down.
He added that most providers of payday advances have quit or not joined the industry group because they are not prepared to abide by its strict code of conduct.
