Canadian Payday Loan Association Applauds New Saskatchewan Law
*Will participate in public consultations and represent best players in the industry who are committed to real consumer protection and fair fees*
(Hamilton) – May 17, 2007 – The Canadian Payday Loan Association (CPLA) today applauded the Saskatchewan government for passing important payday loan legislation that will regulate the industry and balance consumer protection with a viable industry.
The new legislation comes shortly after the federal government passed Bill C-26 which will allow provinces - for the first time - the authority to regulate the payday loan industry as long as they meet the criteria of passing consumer protection legislation and setting maximum allowable fees.
The CPLA has been actively calling on governments across the country for two years to introduce and pass effective payday loan legislation.
Saskatchewan's new law includes many elements of the CPLA's "Code of Best Business Practices" - introduced two years ago and monitored by an independent Ethics and Integrity Commissioner to ensure adherence among CPLA members.
"The Government of Saskatchewan has shown great leadership in wanting to protect consumers and allow for a viable payday loan industry," said Stan Keyes, the President of the CPLA. "The CPLA will participate actively in all consultations on regulations and rate setting on behalf of our members - and will not shy away from highlighting the worst practices and highest fees that must be eliminated for the benefit of consumers."
Saskatchewan's new law effectively harmonizes the province's approach to regulation with recent legislation in Manitoba, Nova Scotia and British Columbia. The governments of Alberta, New Brunswick and Ontario are expected to move forward with their own legislation or regulations in the coming months.
Upwards of 2 million Canadians use payday loans every year 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