POLITICS

Manitoba's Public Utilities Board issues review of payday loan industry

09/23/2013 09:16 EDT | Updated 11/23/2013 05:12 EST
WINNIPEG - The Public Utilities Board wants the Manitoba government to investigate options to regulate payday loan-like products offered by unlicensed and unregulated lenders, including those on the Internet.

The recommendation comes in a review by the PUB of the province’s payday loan industry.

The PUB suggests new borrowing disclosure obligations and certain data collection provisions.

Overall, the PUB doesn’t agree with lenders who suggest rates be increased and that competition will drive the market rate down.

It says most regulated rates currently in place don’t need to change.

However it does recommend allowing payday lenders to recover the full cost of a dishonoured cheque or debit charge.

There’s currently a cost recovery limit of $20.

(CJOB)