Story perspectives
Canada Caps Payday Loan Fees to Combat Predatory Lending
1/23/2025
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Story summary
- Canada implemented new regulations on high-interest and payday loans on January 1, 2024, targeting predatory lending practices.
- The federal cap restricts payday loan fees to $14 per $100 borrowed and limits high-interest loans to 35%.
- Critics warn these regulations might drive vulnerable borrowers to illegal lending sources.
- Supporters argue the changes could assist borrowers in breaking debt cycles and enhancing credit ratings.
