The 2023 Canadian federal budget (Budget 2023) highlighted the government’s intention to introduce numerous consumer protection measures surrounding what it refers to as “predatory lending,” high interest rates and increasing fees paid by consumers.
Its proposed actions include modifying certain provisions of the Criminal Code (the Code) to both reduce the criminal rate of interest and limit payday loan interest rates, as well as introducing additional protections for mortgage payments and bank fees. Upon implementation, these changes would impact not only Canadian consumers, but also businesses and lenders operating across Canada.
Consumer lending highlights from Budget 2023
Adjustments to the Criminal Rate of Interest
One significant consumer protection proposal is to lower the criminal rate of interest under Section 347 to a 35% annual interest rate (APR),…
