Feb 6, 2009 - Today the Board established by the Province of Ontario to make a recommendation on the cap for payday loan rates released their report. It calls for payday loan costs to be capped at $21 for every $100 borrowed.
While we hoped for a stronger rate cap, we urge the McGuinty administration to act quickly to make this recommendation law. We are calling on Minister of Small Business and Consumer Protections (MPP Harindar Takhar) to immediately bring the issue to cabinet and to advocate for its quick approval.
This may not be the rate cap ACORN members wanted, but it's still a major victory. When ACORN began organizing around payday lending, there were no rules, no licenses, and no rate caps; it was the wild west of lending.
Today most Provinces have brought in regulation to curb the most predatory of the practices in the industry, and slowly their bringing in rate caps to prevent excessive fee's and interest.
It's about time.