Dollar Financial Corp. Comments on Recent Nova Scotia Rate Structure
- PUBLICATION: Business Wire
- DATE: Friday, August 1, 2008
BERWYN, Pa.--(BUSINESS WIRE)--Dollar Financial Corp (NASDAQ:DLLR) commented today on the decision by the Nova Scotia Utilities and Review Board (UARB) to set a maximum cap on payday loan rates at $31 per $100.
“We agree with Nova Scotia’s view that a competitive marketplace with clear disclosure of costs is the best way to ensure consumer protection, and believe that other provinces in Canada will review the UARB’s action during their ongoing rate setting processes,” said Jeff Weiss, Chairman and CEO of Dollar Financial Corp. “With this new ruling, we expect to continue providing payday loans to consumers in Nova Scotia at rates below today’s newly stated maximum.”
Nova Scotia is the second province to set a cap on rates, following changes to Canada’s Federal regulations in May 2007 that allow provinces to regulate the payday loan by passing consumer protection legislation and setting maximum allowable fees for payday loans.
The provinces of British Columbia, Alberta, Saskatchewan, Ontario and New Brunswick have committed to also set rate caps on payday loans and are underway with processes in each respective jurisdiction.
Money Mart, Dollar’s subsidiary in Canada, is the founding member of the Canadian Payday Loan Association (CLPLA) which now represents 20 responsible payday loan companies throughout Canada. The CPLA has been instrumental in working with governments to pass payday loan legislation, regulation and rates that ensure a viable industry and consumer protection.