Consultation on Fighting Predatory Lending
Current Status: Closed
The Government announced in Budget 2021 its 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.This engagement process gave all interested members of the public the opportunity to provide input on this topic. The consultation ran from August 9, 2022 to October 7, 2022. Thank you to everyone who participated.
Key questions for consideration
This consultation sought feedback on several areas, including:
- 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?
Feedback received will be considered alongside the analysis our economists have been doing to help inform decisions on the criminal rate of interest and provision of high-cost installment loans in Canada. While this formal consultation has now concluded, Canadians are welcome to share their ideas and comments with the Department of Finance at any time.
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