What is this paper about?

The Annual Percentage Rate (APR) and the Effective Annual Interest Rates are both ways to calculate the cost of credit. Despite their widespread use, there is confusion and unpredictability in how they are measured and applied. This document points out the flaws and inadequacies of these metrics in Canada at a federal and provincial level and makes recommendations as to how lawmakers should use them to regulate the marketplace. Regulators should look to standardize their metrics. Furthermore, the Criminal Code should not encompass commercial lending, which should be left to consumer protections regulations.

Sponsored by:


  • Dean Velentzas

    Head of Policy

  • Lily Cook

    Head of Research

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