Payday Loan Lowdown

Ottawa has moved ahead on its plan to crackdown on the payday lenders, proposing that Canada’s provinces and territories be given the power to regulate the industry. Canadian Justice Minister Vic Toews and Industry Minister Maxime Bernier recently introduced amendments to the Criminal Code that they say give Canada’s provinces and territories the ability to keep tabs on the industry. Theglobeandmail.com reports:

Manitoba has already drafted legislation aimed at dealing with the industry and has been pushing hard for the federal government to step out of the way. That province will set its interest rates through the same panel that sets utility rates. Practices such as rolling fees and interest into unpaid loans would be banned, and explanations of charges would have to be posted.

Read more: Ottawa takes aim at payday loan industry