Money Marts, Cash Stores and other payday lenders aren’t getting a break on tough provincial regulations.
That’s the upshot of a decision released today by the Public Utilities Board, tasked with reviewing the province’s three-year-old cap on the cost of payday loans.
The cost of credit for a payday loan remains unchanged at 17 per cent of the principal loaned, and that the borrowing limit remain at 30 per cent of a borrower’s net pay.
"In finding that these key provisions remain unchanged, the board concludes that the payday loan industry remains financially viable in Manitoba," said the PUB. "The board does not accept the proposition of lenders that the rates should be increased and that competition will drive the market rate down."
Payday lenders have long balked at the province’s rules, and asked the PUB to loosen the rules at hearings earlier this year.