The Department of Finance (DoF) is initiating consultations to tackle predatory lending more effectively. They are considering further reducing the criminal interest rate, increasing access to low-cost, small-value credit options in Canada, and adding amendments to the payday lending exemption. These consultations also aim to identify measures to safeguard Canadians from unfair marketing practices and exorbitant credit fees.

In previous consultations held from August to October 7, 2022, it was shared that stakeholders raised concerns that vulnerable Canadians have limited access to low-cost credit at banks and credit unions, forcing them to turn to high-interest installment loans or payday loans. The government is seeking feedback from Canadians on what actions could be taken to improve, promote, and support access to low-cost, small-value credit by banks and credit unions, and what these credit offerings should look like.

Please share any responses to the questions above with Bolu Omidiji (bomidiji@ccua.com) on or before Friday, November 3, 2023.