Canadian Payday Loan Association — Media & Policy Makers

Canadian Payday Loan Association urges Toews to take action on industry regulation

Canada News-Wire

Tue 26 Sep 2006

Dateline: OTTAWA, Sept. 26

Time: 07:00 (Eastern Time)

OTTAWA, Sept. 26 /CNW Telbec/ - Business leaders from the Canadian Payday Loan Association (CPLA) are in Ottawa to urge the federal government to introduce legislation this Fall that will allow provinces the authority to regulate the industry.

Provinces have been asking the federal government for the authority to regulate payday lending. Manitoba, British Columbia, Alberta, New Brunswick, Nova Scotia and recently Saskatchewan have all signaled plans to regulate this industry once the federal legislative changes are in place.

"There is widespread consensus among stakeholders, the industry association, the provinces and the federal government, that regulation of the industry is necessary and warranted. All that is needed to get the ball rolling is federal legislation," said Michael Thompson, CPLA President. "The federal government has indicated that it will introduce legislation this Fall. We sincerely hope that they stick to their commitment."

The CPLA represents 850 of the 1350 stores offering payday loans to approximately 2 million Canadians every year and is leading the call for government regulation of the industry.

"With the absence of industry regulation, CPLA introduced a Code of Best Business Practices that is the toughest industry-imposed consumer protection standard in the world" stated Thompson. "We are doing everything we can to protect consumers when they get a payday loan but it isn't enough because fully one-third of the industry doesn't play by the rules."

The CPLA was founded in 2004 with a mandate to protect consumers, seek government regulation, and ensure ethical behaviour in the industry.