October 18th, a new law about limits on payday advance cash charges can be applied in Manitoba, Canada. The government finally set the date after two years. Payroll loans already have limits this ads to in other provinces. Source of article – New payday lending limits in Canadian provinces by Personal Money Store.
Pay day loans in Manitoba with a limit
The new limit set for quick fast cash in Manitoba is $ 17 per $ 100 loaned. Manitoba’s Public Utilities Board recommended this rate to be the law. Though the PUB originally tried to implement these rules, a Manitoba court of appeals required the government to enforce the rules. Also, 30 percent of a person’s paycheck is all that could be lent with payday loanin Manitoba. All fees and charges are within the $ 17.
Questioning who’s in charge?
There was lag between the federal government giving provinces the right to regulate lending and Manitoba’s new regulations. Two years of waiting was mostly because of The Cash Store. The company wanted to know whether it was appropriate for the Public Utilities Board to make the limits. The recommendations of the board settled this lawsuit.
Another Canadian limit
The federal government in Canada of course provinces the right to regulate payday loans products in 2006. Nova Scotia, British Columbia, Ontario, Alberta and Saskatchewan have already implemented maximum rate limits. These limits on charges range between $ 21 and $ 31 per $ 100 lent.
Reaction of the Canadian payday lenders industry
The Canadian Pay day Association has already reacted to the new limits in Manitoba. $ 26 is generally what it costs to give a $ 100 loan. The high rate of defaults combined with short terms of the loan mean the lenders face difficulty in making a consistent profit.
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