News Releases

News Release - Manitoba

May 2, 2008

CONSUMERS BUREAU TO BEGIN ACCEPTING LICENCING APPLICATIONS FROM PAYDAY LOAN COMPANIES



The Manitoba Consumers’ Bureau will begin accepting and processing license applications for payday lenders on May 5, Finance Minister Greg Selinger announced today.
 
This move comes with the proclamation of the licensing and bonding sections of the Consumer Protection Amendment Act.
 
Licences will not come into effect until the date of full proclamation of the amended act.  Proclamation is dependent on designation from the federal government under the Criminal Code that will allow the province to set interest rates for payday loans. Designation and full proclamation is expected later this year.
 
“We are working on requiring payday loan companies to operate within a comprehensive regulatory framework,” said Selinger.  “The licensing requirement is the next step towards full regulation.”
 
Selinger said a major initiative of the legislation was to establish reasonable limits on payday lending charges.
 
Following extensive public consultations, the Public Utilities Board issued an order setting the maximum rates that can be charged for a payday loan. The rates will come into effect when the legislation is proclaimed in full.
 
“We are making real progress in protecting hard-working Manitobans from high-cost payday loans,” said Selinger. “We want to ensure that borrowers are protected against exorbitant fees and potential abusive industry practices.”
 
Licensing material and information on the payday loan legislation is available from the Consumers’ Bureau . The bureau can be reached at consumersbureau@gov.mb.ca or by calling 945-4062 in Winnipeg or toll-free at 1-800-782-0067.
 
- 30 -
 
Background information attached


Backgrounder
The Provincial Legislation: - https://www.gov.mb.ca/asset_library/en/newslinks/2008/2008may/PaydayLoans.FI.doc