Hey there, time traveller!
This article was published 6/1/2009 (3095 days ago), so information in it may no longer be current.
The Doer government has suffered a big setback in its attempt to regulate the payday loan industry in Manitoba.
A Manitoba Court of Appeal decision released today said payday lenders were unfairly treated by the province’s Public Utilities Board (PUB) when it set lending rates last spring for the payday companies. The PUB was acting on a move by the province to regulate the industry, which has been tarnished by high lending rates.
The court decision opens the door for The Cash Store Financial Services to argue the PUB acted beyond its scope in setting rates. The April 4 decision by the PUB capped the maximum cost of credit at 17 per cent for loans up to $500; 15 per cent for $501 to $1,000; and six per cent for loans between $1,000 and $1,500.
Payday loan companies cried foul saying the lower rates would drive many of them out of business.
Justice Alan MacInnes agreed. He said in his written decision there is a possibility the PUB’s decision could force many in the quick- loan industry to close their doors.
MacInnes said a full appeal of the PUB’s ruling should be heard. A date for the hearing has not been set.
In the meantime, MacInnes said the PUB’s decision on the rates should be put on hold until the case is fully argued in court.
Manitoba is the battleground for the future of the payday loan industry in Canada as provincial governments coast-to-coast are watching what happens as they too want to bring in rules regulating the industry.