On­tario re­duc­ing cost of bor­row­ing pay­day loans

The Goderich Signal-Star - - GODERICH IN FOCUS -

On­tario is low­er­ing the max­i­mum to­tal cost of bor­row­ing for a pay­day loan from $ 21 to $ 18 per $ 100 bor­rowed as of Jan. 1, 2017.

Pay­day loans are a com­monly used fi­nan­cial ser­vice in On­tario, and this change will en­sure con­sumers are bet­ter pro­tected and able to ben­e­fit from lower costs for each loan.

On­tario has also in­tro­duced leg­is­la­tion to strengthen pro­tec­tions for con­sumers who use fi­nan­cial ser­vices such as pay­day loans, in­stal­ment loans, rent-to-own ser­vices and cheque- cash­ing ser­vices, as well as for con­sumers who have debts in col­lec­tion.

If passed the Putting Con­sumers First Act would in­crease pro­tec­tions for con­sumers in sev­eral new ways, in­clud­ing:

• A grace pe­riod for re­pay­ment for con­sumers us­ing rent-to-own ser­vices

• An ex­tended re­pay­ment pe­riod op­tion for con­sumers who are re­peat pay­day loan bor­row­ers

• Es­tab­lish­ing stan­dards or fac­tors that pay­day lenders must take into ac­count when de­ter­min­ing a bor­rower’s abil­ity to re­pay

• Re­stric­tions on high-fre­quency bor­row­ing

• Adding and im­prov­ing com­pli­ance and en­force­ment pow­ers to ad­dress un­li­censed lenders and loan bro­kers

Strength­en­ing con­sumer pro­tec­tion is part of our plan to cre­ate jobs, grow our econ­omy and help peo­ple in their ev­ery­day lives.

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