New rules in Canada
December 15, 2009 | industry, international, regulation | Comments (0)From the Toronto Star:
The Ontario government has moved forward with sweeping changes sparked in part by a 2004 Star probe on how low-income earners get gouged when they borrow money for short periods of time.
As of Tuesday, the cap on the interest charged is $21 for each $100 borrowed – the second-lowest rate in Canada after Manitoba, which has a $17 maximum.
“Capping payday loan rates is another step we’re taking to protect consumers,” a government official said Monday, noting it’s the latest in a series of measures gradually implemented this year to regulate an industry that has been criticized for preying on the poor.
“It’s building on our efforts to protect consumers who need to use these types of loans, including requiring lenders and loan brokers to be licensed and transparent on their lending practices,” the insider said.
The province has also outlawed “rollover” loans to stop people from borrowing more money from a payday lender before they have paid off an earlier debt.
Comments»
No comments yet.