CPLA Welcomes New Payday Loan Regulations in Prince Edward Island
HAMILTON, ON, Feb. 7, 2013 /CNW/ - The Canadian Payday Loan Association today welcomed news that the Province of Prince Edward Island will be regulating the payday loan industry, including a maximum rate of borrowing. This regulation comes after several years of close work with the province and the federal government to introduce a law that allows for a viable industry while providing strong consumer protection.
"Prince Edward Island has showed great leadership in protecting consumers while still recognizing the important service the payday loan industry provides for many people seeking short-term, small-sum loans," said the Hon. Stan Keyes, President of the CPLA. "Our members look forward to operating within the new laws and regulations to provide a valued service to the consumers of PEI."
The new rules will set the maximum cost of borrowing in PEI at $25 per $100 borrowed, and requires full disclosure of the total cost of borrowing. Payday loan companies in PEI will also need to be licensed.
Upwards of 2 million Canadians have used payday loans to cover small-sum, short-term emergency and unexpected expenses. The average payday loan is approximately is $300. for 10 days.
The Canadian Payday Loan Association (CPLA) represents the majority of licensed payday lenders in Canada. CPLA works to ensure payday loan companies hold themselves to a higher standard of responsible service and to help customers make informed financial decisions.
SOURCE: Canadian Payday Loan Association (CPLA)For further information:
Hon. Stan Keyes - President of the CPLA
Office: (905) 522-2752