The Changing Face of Payday Lending in Canada

The Changing Face of Payday Lending in Canada

In this paper, Cardus continues its multi-year research associated with loan that is payday in Canada and evaluates which policies will work, that aren’t, and just just what yet stays unknown about payday advances, customer behaviour, as well as the effect of federal federal government regulation on the supply and interest in small-dollar loans.

Executive Overview

The payday financing market in Canada is changing. Provinces across Canada have lowered interest levels and changed the principles for small-dollar loans. The purpose of these policies is always to protect customers from unscrupulous loan providers, and also to minmise the possibility of borrowers getting caught when you look at the period of financial obligation. just What spent some time working, and just just what hasn’t? In this paper, Cardus continues its multi-year research associated with loan that is payday in Canada and evaluates which policies will work, that are not, and exactly exactly exactly what yet stays unknown about pay day loans, customer behaviour, while the effect of federal federal government legislation from the supply and interest in small-dollar loans. Our research suggests that quite a few earlier predictions—including concerns in regards to the disappearance of credit choices for those regarding the margins—have be realized. Continue reading The Changing Face of Payday Lending in Canada