The federal government recently introduced Bill C-26, which will affect the payday loan industry by amending the Criminal Code of Canada (the “Code”). Currently, section 347 of the Code makes it illegal to agree to or receive interest at a rate in excess of 60%. If and when Bill C-26 comes into force, the provinces will have the authority to regulate important aspects of payday lending, including the maximum interest rates that may be charged pursuant to a payday loan.

type Financial Services Alert - October 2006 - Criminal Code "Criminal Interest Rate" Amendments to Include "Payday Loans"