(*)Believes Industry Regulation Still Needed to Protect Consumers(*)
OTTAWA, Aug. 1 /CNW Telbec/ - The Canadian Payday Loan Association (CPLA)
welcomed new consumer protection measures which came into effect today in
Ontario that require enhanced disclosure when issuing a payday loan.
"We support the measures that have come into force today in Ontario and
we look forward to the Government of Ontario going further by introducing
comprehensive legislation and regulation that will provide full consumer
protection, " says Stan Keyes, President, CPLA. "Plain language disclosure and
other consumer protection measures are already part of the CPLA's Code of Best
Business Practices to which all members adhere. The CPLA supports these
regulations that will require all payday lenders, including nonmembers of the
Association to disclose on a consistent basis" he went on to say.
The CPLA has been a constructive partner with government in the formation
of these regulations and is engaged in the consultation process currently
under way on how best to regulate the industry.
The federal government has passed ground-breaking legislation (Bill C-26)
that will allow provinces - for the first time - to regulate the payday loan
industry as long as a province passes consumer protection legislation and sets
a maximum allowable rate of borrowing.
The provinces of Manitoba and Nova Scotia and Saskatchewan have already
passed the required legislation. The provinces of Alberta and New Brunswick
have committed to introducing legislation this fall. British Columbia is
currently establishing rates and regulations.
This is an important step in ensuring that consumers get full and
complete disclosure so they can make informed decisions. The CPLA urges the
government to bring forward legislation to regulate the payday loan industry
and provide Ontarians with the full benefit of consumer protection as offered
through the provisions of C-26, including setting a maximum allowable rate on
Upwards of 2 million Canadians use payday loans every year. The CPLA
represents 500 of the 1350 stores operating in Canada today.
For further information:
For further information: The Hon. Stan Keyes, P.C., (905) 645-4434