Canadian Payday Loan Association Applauds Ontario Payday Loan Legislation
(Hamilton) – The Canadian Payday Loan Association (CPLA) today applauded the Ontario government for passing important payday loan legislation that will regulate the industry and balance consumer protection with a viable industry. With the passage of Bill 48 today, Ontario becomes the sixth province to have put in place legislative measures to regulate the payday loan industry.
As has been the case with all other provinces that have passed legislation, the next step will involve the creation of companion regulations that will include a provision placing a maximum cap on the total allowable fees and charges for a payday loan. An advisory panel will move ahead over the summer to consult with the industry and other stakeholders, and to provide advice to the government on the rate cap for payday loans. The CPLA looks forward to these consultations and will actively participate in them. The CPLA has already produced extensive research and submissions to the provinces of Nova Scotia and Manitoba on the setting of rates. These submissions can be found at http://www.cpla-acps.ca/english/mediasubmissions.php.
For over three years, the CPLA has been actively calling on governments across the country to introduce and pass effective payday loan legislation.
Most of the elements of Ontario’s new legislation are included in the CPLA’s “Code of Best Business Practices” – introduced over three years ago and monitored by an independent Ethics and Integrity Commissioner to ensure adherence by CPLA members.
In addition, the CPLA already promotes consumer education and awareness by posting credit counseling brochures in every member store.
“This legislation is an important step forward for real consumer protection in Ontario,” said Stan Keyes, the President of the CPLA. “The CPLA will continue to be an industry leader in protecting consumers and will participate actively in the rate-setting process for this mainstream, convenience financial product. Regulations must ensure real consumer protection and a viable, competitive industry.”
Last fall, the CPLA released the first-ever statistically relevant survey of payday loan customers in Ontario which demonstrates customers to be well-informed, well-educated, with incomes on par with the general population, and deliberate in choosing this financial product over other alternatives. The survey results can be found at: http://www.cpla-acps.ca/english/mediastudies.php.
Ontario’s payday loan legislation follows British Columbia, Saskatchewan, Manitoba, Nova Scotia and New Brunswick, who have all passed legislation and are in the process of setting a maximum cap on fees.
Upwards of 2 million Canadians have used payday loans to cover small-sum, short-term emergencies. Loans are capped at $1,500, with the average loan being $300 for 10 days.
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For more information, contact:
Hon. Stan Keyes – President of the CPLA
(905) 522-2752
(905) 645-4434