Canadian Payday Loan Association Applauds New Law
The Canadian Payday Loan Association (CPLA) this week applauded the British Columbia government for passing important personal cash loan legislation that will regulate the industry and balance consumer protection with a viable industry.
The new provincial legislation follows changes to the Criminal Code in May 2007 that now allow provinces - for the first time - the authority to regulate the payday loan industry as long as they meet the criteria of passing consumer protection legislation and setting maximum allowable fees.
The CPLA has been working with the British Columbia government over the past two years towards effective legislation and regulation on cash advances.
British Columbia’s new law includes many elements of the CPLA’s ‘Code of Best Business Practices’ - introduced two years ago and monitored by an independent Ethics and Integrity Commissioner to ensure adherence among CPLA members.
“The Government of British Columbia has shown great leadership in wanting to protect consumers and allow for a viable payday loan industry,” said Stan Keyes, President of the CPLA. “The CPLA will participate actively in all consultations on regulations and rate setting on behalf of our members.”
British Columbia’s new law effectively harmonizes the province’s approach to regulation with recent legislation in Saskatchewan, Manitoba and Nova Scotia. The governments of Alberta, New Brunswick and Ontario are expected to move forward with their own faxless payday advance legislation or regulations in the coming months.