News Releases

News Release - Manitoba

April 23, 2010


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Amendments to Regulation Would Provide Increased Protection for Consumers: Mackintosh

Manitoba has moved to set the maximum interest rate that would be charged for a payday loan and has taken extra steps to protect consumers who use payday loans, Family Services and Consumer Affairs Minister Gord Mackintosh announced today.
“We’re going to ensure consumers are protected from exorbitant rates and questionable business practices,” said Mackintosh.  “At the same time, we recognize there is a demand for this service and we want to give lenders clear rules to operate their business.”
When the amendments come into effect, the maximum rate that could be charged for a payday loan will be $17 per $100 borrowed and the maximum loan would be 30 per cent of a person’s next pay.  Manitoba’s rate would be the lowest in the country among provinces that effectively allow payday loans, the minister said.
Regulation highlights would include:
·         the maximum rate for a payday loan would be set at $17 per $100;
·         lenders would be prohibited from giving a payday loan that is more than 30 per cent of the borrower’s next pay;
·         terms and conditions in loan agreements would have to be disclosed in a way that is clear and understandable to borrowers;
·         all fees would be included in the cost of credit, whether or not they are optional or issued by a third party;
·         Internet lenders would be regulated, ensuring they operate with the same rules as storefront locations;
·         written consent would be required for a lender to verify a borrower’s employment;
·         rules would prevent lenders from making unauthorized withdrawals from a borrower's account or using rewards or incentives to entice borrowers to get a loan.
“We’re making these changes to ensure that lenders clearly communicate the costs associated with payday loans and that borrowers understand the terms they are agreeing to,” Mackintosh said. “With this regulation, payday lenders will have defined limits to the rates they can charge for their service.”                                                                      
The regulation amendments were established after consultation with stakeholder groups like the Consumers’ Association of Canada (Manitoba), Manitoba Society of Seniors, Winnipeg Harvest, the Canadian Payday Loan Association and a number of payday lenders.
The maximum rates, payday lender licensing and other regulation amendments are expected to come into force by summer once a designation order under the Criminal Code by the federal government is received which will allow the province to set the rate for payday loans.
Strong payday loan legislation is part of a new multi-year consumer protection strategy which will be unveiled later this spring, the minister said.  For more information on the payday loan legislation, contact the Consumers’ Bureau at 204-945-3800, 1-800-782-0067 (toll-free) or by email at
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