New Brunswick Looks to Regulate Use of Payday Loans, Cash Advances

Historical archive, first published 2006 — payday-lending laws and rates have changed since. Preserved for the record.

The debate over payday loans in Canada is growing stronge. The most recent entry into the fray? New Brunswick minister of justice and consumer affairs, Bruce Fitch.

He's trying to arrange a meeting with the federal justice minister to discuss changes being proposed by Ottawa, and whether provincial legislation would be required on the issue of cash loans.

Opposition Finance critic, Mike Murphy, says he's concerned that people who use a payday loan company face an average of 107 percent interest after just 10 days. Murphy says he's getting e-mails from people who have been impacted by the high interest rates.

A federal committee, according to Fitch, has been studying payday loans and he's hoping for a meeting of provincial ministers this fall. He says no fax payday loan companies should still be able to operate, but not at the expense of consumers.