HAMILTON, ON, Dec. 7 /CNW/ - The Canadian Payday Loan Association today welcomed news that the Province of Saskatchewan will be regulating the maximum rate of borrowing for payday loan customers by placing a cap on the total cost of borrowing. This announcement 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. Saskatchewan now becomes the fifth province to have set a maximum cost of borrowing for payday loan customers.
"Saskatchewan 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 welcome the rate cap announced today and look forward to participating in the consultations that are now underway on proposed regulations to ensure they achieve the desired outcomes."
The new rules will set the maximum cost of borrowing in Saskatchewan at $23 per $100.
Upwards of 2 million Canadians have used payday loans to cover small-sum, short-term emergency and unexpected expenses.
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. Four provinces to date (British Columbia, Alberta, Ontario and Nova Scotia) have completed regulation of the payday loan industry by passing a package of consumer protection regulations which includes a cap on the maximum cost of borrowing.
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