Consultation on Fighting Predatory Lending
Current Status: Open
Closing date: October 7, 2022
Budget 2021 announced the Government of Canada's intention to consult on fighting predatory lending by lowering the criminal rate of interest in the Criminal Code of Canada applicable to, among other things, installment loans offered by payday lenders. The criminal rate of interest, which is currently set at 60 per cent effective annual interest, is applicable to most lending products in Canada. This consultation paper seeks views and feedback on proposals related to the criminal rate of interest and provision of high-cost installment loans in Canada.
Specifically, key questions we want to hear from you on include:
- Should the criminal rate of interest be set at a fixed level or linked to prevailing market conditions?
- What are the reasons financial consumers access high-cost installment loans?
- What impact would lowering the criminal rate of interest have on the availability of credit for financial consumers who use high-cost installment loans?
- How could the Government of Canada, including the FCAC, improve financial education and awareness regarding high-cost installment loans to further empower and protect Canadians as they make informed financial decisions?
We also invite you to submit any additional comments or feedback relevant to the scope of this consultation. Send us your official documentation by email or by mail.
Send us an email
Send us your comments to firstname.lastname@example.org with "Predatory Lending Consultation" as the subject line.
Participate by mail
Financial Services Division
Financial Sector Policy Branch
Department of Finance Canada
James Michael Flaherty Building
90 Elgin St
Ottawa ON K1A 0G5
Who is the focus of this consultation?
Through this consultation, we want to hear from stakeholders, consumer groups, industry associations, and members of the public.
Our conversation doesn't end here.
We'll be collecting your feedback and will be considered alongside the research our economists have been doing to help inform decisions on the criminal rate of interest and provision of high-cost installment loans in Canada.
Those providing comments are asked to indicate clearly the name of the individual or the organization that should be identified as having made the submission. In order to respect privacy and confidentiality, please advise when providing your comments whether you:
- consent to the disclosure of your comments in whole or in part;
- request that your identity and any personal identifiers be removed prior to publication; or
- wish that any portions of your comments be kept confidential (if so, clearly identify the confidential portions).
Information received through this comment process is subject to the Access to Information Act and the Privacy Act. Should you indicate that your comments, or any portions thereof, be considered confidential, the Department of Finance will make all reasonable efforts to protect this information.
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