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September 08, 2005

Payday loans in Canada will be under more scrutiny

Canadian federal government decided to let provinces have more power over payday loan industry. This was prompted by widespread complains about sky high interest rates and excessive fees charged by payday loan companies. So beginning this fall, provinces will have the right to set and enforce reasonable maximum interest rates and fees.

Currently Canadian Criminal Code caps pay day loans interest rates at 60 per cent per year. However many provincial officials say that this cap is barely enforced. With administrative fees, the cost of a payday loan can be quite high. Ontario and Manitoba demand that those fees are to be included in the interest rate advertised by payday loan shops.

Posted in Payday Loans at September 8, 2005 11:52 PM

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