HALIFAX, July 31 /CNW/ - Today's decision by the Nova Scotia Utility and
Review Board (UARB) to cap the rates on payday loans will ensure a competitive
lending industry which will protect consumers, said Canadian Payday Loan
Association (CPLA) President Stan Keyes.
"Nova Scotia heavily relied on solid evidence and expert witnesses
regarding the payday loan industry and payday loan customers," said Mr. Keyes.
"Today's ruling on rates recognizes the responsible, educated consumers that
require access to this important form of credit."
In the decision released today in Halifax, the UARB set the maximum cost
of borrowing at $31 per $100, inclusive of all expenses (including interest
and other charges). The CPLA has been working closely with governments across
the country to achieve regulation of the payday loan industry and ensure
"Today's ruling represents a ceiling on rates. It ensures that no loan
shall ever cost more than $31 per $100, but most players will compete with
each other to provide lower rates to benefit consumers requiring this
service," said Mr. Keyes.
Key conclusions of the Nova Scotia UARB include:
- Consumer satisfaction with payday loans: People who take out payday
loans are satisfied with the costs they currently pay (paragraph 53)
- Incorrect reports of excessive fees: Reports of excessive fees in the
industry do not accurately reflect the real costs of a short-term loan
- fees for short-term payday loans should not be compared to fees for
annual loans (paragraphs 54 and 55)
- Competition will protect consumers: Competition in a free marketplace
is - and will be -- the most effective control on how much payday
loan companies charge and will ensure consumer protection (paragraph
105, 112, 128 and 220)
The CPLA represents 20 responsible payday loan companies across Canada
and has been actively calling on governments across the country for three
years to introduce and pass effective payday loan legislation and regulation.
The CPLA's extensive research and submission to the Nova Scotia UARB can be
found at http://www.cpla-acps.ca/english/mediasubmissions.php.
Mr. Keyes was in Halifax today to receive the decision.
For further information:
For further information: Hon. Stan Keyes, President - Canadian Payday
Loan Association, (905) 645-4434 (cell), (905) 522-2752 (office)