Consumers and governmental officials alike in Canada need to address the question as to whether cash advance and payday loan in Canada services need to be regulated by respective provinces. Moreover, if quick cash loan and fast payday loan providers are regulated in Canada, what the possible affect on the consumer would be. Provinces within Canada were granted the ability by the Federal government in 2007 to regulate payday loan and cash advance providers in their respective provinces. According to Statistics Canada, there are approximately 1,400 fast payday loan and cash advance providers in Canada. In Ontario alone there are approximately 700 quick payday loan storefront offering prospective borrowers in Ontario these short-term cash advance services.
Payday Loans in Manitoba
In November 2006, Manitoba entrenched quick cash loan regulations, also called payday loans and cash advanced, into law. According to the Manitoba payday loan and Manitoba cash advance regulation, a quick cash loan provider can charge a maximum of 17% on loans up to $500. Additionally, Manitoba payday loan cash advance regulations also require that quick cash loan operations in the province also be licensed and bonded. This is in place to ensure that the fast payday loan providers operating in the province follow the regulations and to also ensure that they are credible. Once a instant payday loan has been processed the customer now has 48-hours to cancel their pay day loan, whereas before the borrower could not cancel. slick cash loan
Payday Loans in Nova Scotia
Furthermore, after Manitoba enacted its payday loan legislation in 2006, Nova Scotia adopted their own set of payday loan regulations. In August 2008, the provincial government enacted Nova Scotia payday loan legislation. According to the legislation, physical quick cash loan locations must not charge a prospective payday loan cash advance borrower more than $31 per $100 borrowed. Furthermore, the faxless payday loan and faxless cash advance provider must also be transparent, whereby the payday loan operation will provide full disclosure to the Utility and Review Board.