CLA Response on the Consultation on Lowering the Criminal Rate of Interest
With over $186 billion in consumer credit balances, the non-prime consumer segment is a significant contributor to the lifeblood of the Canadian economy; they also represent the segment of the population that most relies on sources of alternative credit, given their inability to qualify at major financial institutions who focus largely on servicing prime consumers.
The CLA appreciates the opportunity to provide our members’ perspective on the government’s consultation on potential changes to the maximum allowable rate of interest. The primary intent of this submission is to highlight the many unintended consequences that lowering the maximum allowable rate of interest under the Criminal Code would have on the Canadian financial system, and how it would affect access to regulated mainstream credit for millions of hardworking Canadian families.
Read full response here. https://www.canadianlenders.org/wp-content/uploads/2022/10/CLA-Consultation-Submission.pdf