It’s not unusual for people to have multiple loans at any given time. (Shutterstock/dcwcreations)
For years, Canadians in need of cash—often those with lower incomes—have been falling victim to the exorbitant interest rates and fees charged by alternative lenders. That’s why the 2023 federal budget proposed changes to the Criminal Code that would limit the amount these lenders could charge in interest and fees. Among other changes, the proposals would lower the maximum annual interest rate that lenders can charge to 35 per cent from the current ceiling of 60 per cent. They would also cap the maximum fee that lenders can charge people for the amount they borrow to $14 per $100 borrowed (current fees vary across the country and can reach up to $20).
We spoke with Doretta Thompson, CPA Canada’s financial literacy leader, about why this proposal is significant…
