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Author Topic: Manitoba Lenders Face New Regulations
Aristotleded24
rabble-rouser
Babbler # 9327

posted 13 March 2006 08:34 PM      Profile for Aristotleded24   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
From CBC Winnipeg:

quote:
Finance Minister Greg Selinger says the proposed Consumer Protection Amendment Act would require payday loan companies to be licensed and bonded. Potential customers would be warned about the high cost of the loan, and they would have the right to cancel a loan without penalty after 48 hours.

The legislation proposes the provincial Public Utilities Board control the fees the companies are allowed to charge. Additional fees would not be allowed when loans are renewed, extended or replaced by a new loan unless these additional fees are authorized by the PUB.

Selinger says the legislation protects consumers while respecting some Manitobans' choice to use payday lenders.

"We've seen through research in the community that there are many people that are using this service that are paying what we consider to be exorbitant rates of interest with no real regulation of it, so after careful consideration and research all across the country, we've decided to be the first province in Canada to bring in consumer protections for people that use payday lenders," Selinger said.

"The intention is not to drive the companies out of business, because people are showing an interest in having this service, but to make sure that when they offer the service they do it in a way that's just and reasonable."


This part caught my attention:

quote:
The provincial government is also investing in a project to assist low-income people in managing their money so they won't be put in a position where they require the services of payday loan companies.

The Community Financial Service Centre, an initiative by the North End Community Renewal Corporation, will provide money-management training as well as small, low-interest, short-term loans to help its clients improve their credit history.

"It'll give people alternatives," said Selinger. "Instead of going to payday lenders, they will get ID, they will get access to mainstream institutions, they will get support on how to do better financial planning. All of those things will reduce their dependence on payday lenders."


So where is your plan to do something about the fact that these people aren't taking in much income in the first place, Mr. Sellinger? Not that encouraging people to be more prudent with their money is a bad thing, but maybe more is needed in this case?


From: Winnipeg | Registered: May 2005  |  IP: Logged
Michelle
Moderator
Babbler # 560

posted 27 November 2007 02:05 PM      Profile for Michelle   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
More on payday loan regulation in Manitoba

quote:
Public hearings are underway in Winnipeg to help Manitoba's Public Utilities Board determine how much payday loan companies will be allowed to charge Manitobans for short-term loans.

Leo Sorensen was one of the first presenters at the Winnipeg hearings, which began Tuesday.

Sorensen's Loans Til Payday is based in British Columbia, but operates payday loan outlets across Western Canada, including three in Winnipeg.

He doesn't believe the government has any place telling him what he can charge his customers.

"The government of Manitoba has taken a very socialist attitude of where they want to go," he told reporters after his presentation to the board. "Why are they regulating us? Are they telling Wal-Mart what to charge?"

In his presentation, Sorensen said he charges, on average, about 720 per cent interest annually on short-term loans.


Well, gee, buddy, when Walmart starts charging 720% interest on their store credit cards, we'll be going after them too.


From: I've got a fever, and the only prescription is more cowbell. | Registered: May 2001  |  IP: Logged
Michelle
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Babbler # 560

posted 27 November 2007 02:13 PM      Profile for Michelle   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
Predatory Lenders Association

This is a US site, a great satirical site, but it also has fantastic information on the industry.

I love how it also includes "Military Loan Finders" which I assume is a statement on the fact that the US military targets impoverished young people for recruitment as cannon fodder in exchange for paying school tuition. Nice student loan if you don't end up dead or maimed!


From: I've got a fever, and the only prescription is more cowbell. | Registered: May 2001  |  IP: Logged

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