VANCOUVER, Oct. 15 /CNW/ - The Canadian Payday Loan Association today welcomed news that the Province of British Columbia will be regulating the payday loan industry, including a maximum rate of borrowing as of November 1, 2009. 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.
"British Columbia 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 fully within the new laws and regulations and continuing to work with government to ensure the regulations achieve the desired outcomes."
The new rules will set the maximum cost of borrowing in BC at $23 per $100, and prohibit unscrupulous lending practices such as rollover loans. As of November 1, 2009 payday loan companies in B.C. will also need to be licensed by Consumer Protection BC (www.consumerprotectionbc.ca/).
Upwards of 2 million Canadians have used payday loans to cover small-sum, short-term emergency and unexpected expenses. Loans are capped at $1,500, with the average loan being $280 for 10 days.
The CPLA represents 23 responsible payday loan companies across Canada and has been actively calling on governments across the country for five years to introduce and pass effective payday loan legislation and regulation.
SOURCE Canadian Payday Loan Association (CPLA)
For further information: For further information: Hon. Stan Keyes - President of the CPLA, Office: (905) 522-2752, Mobile: (905) 645-4434, Email: email@example.com