Canada Tightens Payday Loan Regulations

Canada is setting new rules to make payday loans less costly, cutting the maximum interest from 47% to 35%. This change aims to ease the burden on borrowers and could save millions.

But some say there's a catch. These lower rates may mean some Canadians might not get loans as easily from regulated lenders. This could lead some to seek loans from unlicensed sources, which could be risky and more expensive.

Here are steps to stay informed and safe:

• Check out the new loan terms before you borrow.

• Look for other credit options, like credit unions or community lending programs.

Stay smart about borrowing and stay informed.

https://www.gazette.gc.ca/rp-pr/p1/2023/2023-12-23/html/reg3-eng.html