Ontario Strengthens Consumer Protection On Payday Lending



    Public Consultation To Look At Provincial Regulation

    QUEEN'S PARK, April 30 /CNW/ - The Ontario government is strengthening
protections for consumers who access the payday lending industry, said
Government Services Minister Gerry Phillips.
    "Our government is introducing new protections to offer Ontarians who use
payday loans more transparency and fairness," said Phillips. "We will require
payday lenders to display the cost per hundred dollars of their loans."
    Ontario has approved much stronger protections for users of payday loans
in regulations under the Consumer Protection Act. These regulations will:

    
    -   Require payday lenders to post on-site in a prominent place a poster
        outlining the cost per one hundred dollars to obtain a payday loan
    -   Ensure that consumers receive standardized disclosure of critical
        information by requiring the lender to use a prescribed standard-form
        contract
    -   Ensure that consumers are advanced their payday loan funds
        immediately upon signing their agreement.
    

    The federal government recently passed legislation that will allow
provinces to further regulate the payday lending industry. Further regulation
could include licensing, a consumer protection framework and regulating the
cost of borrowing for the payday lending industry. Ontario has been urging the
federal government to regulate the payday lending industry, including interest
rates, as a national standard would ensure uniform protection for all
Canadians.
    "Now that the federal government has chosen to hand this responsibility
to the provinces, Ontario is acting to provide appropriate consumer protection
measures for payday lending," said Phillips. The Ontario government has
released a consultation paper on the regulation of payday loans, and is asking
the public for written submissions on that paper. To view the complete
consultation paper on this issue, visit www.Ontario.ca/MGSConsultations

    
                 Disponible en français     www.mgs.gov.on.ca
    




For further information:

For further information: Paul de Zara, Minister's Office, Office: (416)
327-3072, Cell: (647) 388-9671; Ciaran Ganley, Communications Branch, (416)
325-8659

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Ontario Ministry of Government Services

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