A rookie Mississauga MPP says new legislation introduced yesterday by the provincial government will hinder so-called payday loan operators from taking advantage of low-income Ontarians.
“I am proud that this bill, if passed, will make certain that any Ontarian that considers this type of loan will have all the terms of the loan presented to them clearly with no hidden charges and no hidden fees,” said Mississauga South MPP Charles Sousa.
He was speaking after Minister of Government and Consumer Services Ted McMeekin introduced a bill to regulate the payday loan industry, which has been frequently accused of usurious interest rates.
Payday loan operators cash cheques for many low-income workers who often take out loans at the same time because they cannot cover their living costs. The operators provide up to $300, often at rates much higher than the 60 per cent usury rate established in the Criminal Code.
The law introduced by the Liberal government will: require lenders to include in the total cost of borrowing all charges the consumer is required to pay; license all payday lenders and allow borrowers to cancel agreements during a cooling-off period.
"Unfortunately, this government has completely missed the most important aspect, a cap on interest rates," New Democrat MPP Cheri DiNovo (Parkdale-High Park) said. "The bill still permits payday loan operators to charge criminal interest rates."
She called on the government to completely outlaw the industry. "We don't need payday lenders," she said. "Payday lenders are usurious. These are unnecessary services and they leech off the poor."
Source:
http://www.mississauganews.com/
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