The government is finally lowering the maximum interest rate on loans — to 35% — and the alternative loan industry isn’t happy

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In a move hailed as a victory by opponents of so-called predatory lending, Ottawa has pledged to cut the legally permitted cap on interest rates for loans.

that it intends to cut the maximum allowable annual percentage rate on loans to 35 per cent, down from the current 47 per cent. It also plans to launch consultations on whether the rate, which is in the Criminal Code, should be lowered even further.

“We were pushing for 30 per cent and they did 35 per cent,” she said, adding, “ it will save a lot of low- and moderate-income people a lot of money.” The Canadian Lenders Association, which represents alternative lenders but not the payday loan industry, said in a statement that it is disappointed by the budget announcement, which it claims could cut 4.8 million Canadians off from access to credit.

The government also promised a separate consultation on the payday loan exemption from the federal interest rate cap. In the meantime, it said it plans to put a cap on payday loan charges, limiting the amount of interest to no more than $14 per $100 borrowed.

 

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So your trying to tell us that 35% profit means less services?

Thank goodness. No business should be predicated on usuary rates. Cut them off and let the government provide short term relief.

cafreeland takes Canadians for fools.

Good. If someone’s risk level requires a 47% interest rate, those people should not be given debt money. They’ll have to cut expenses, get better jobs, or look for government handouts.

Mashallah

The trudopes strike again!

That's pretty close to what some credit cards charge.

Canada had usury laws.

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