iPolitics By Jolson Lim. Published on Apr 21, 2021 5:21pm A Money Mart store in Brampton, Ont., in July 2020 (Rick Madonik/Toronto Star)
Ottawa will consider lowering the maximum interest rate to stop the “predatory lending” of outfits that make high-interest loans, which anti-poverty advocates say have exploited Canadians during the pandemic.
In Monday’s budget, the federal government announced plans to launch consultations on lowering the “criminal rate of interest,” the maximum annualized interest rate for credit allowed under the federal Criminal Code.
For instalment loans longer-term credit with high interest lenders can charge up to 60 per cent annual interest under the usury rules.