A government-created advisory board advised Ontario government  to cap charges on payday loans at $21 per every $100 borrowed.

The board advised the province should cap charges at $21 per $100 borrowed under payday loan agreements and set different loan limits depending on the type of borrower.

“We consulted with a broad range of experts and interested parties to ensure that we heard and understood the concerns of the community and the industry,” said Paul Vessey, a member of the Maximum Total Cost of Borrowing Advisory Board, in a statement.

It will be looked at once again by cabinet for a final decision.

The Canadian Payday Loan Association stated that the recommendations were balanced, but also said it could become a burden on small payday loan stores.

This entry was posted on Friday, February 13th, 2009 at 6:01 pm and is filed under Developments in payday loan industry in Canada.. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.