The pandemic has impacted the poorest and most vulnerable while the rich are getting richer!
According to Statistics Canada, more than 3 million Canadians live below the poverty line, and with the Covid-19 pandemic, many families, entrepreneurs, single or vulnerable individuals have seen their financial situation deteriorate. To make ends meet, without any other option, many of them have had to turn to high interest rate lenders. Bill C-213 will change the Criminal Code to lower the maximum legal interest rate from 60 per cent to 30 per cent and repeal the criminal interest rate loophole on payday loan agreements. First Nations, Inuit and Métis, particularly those who live in urban centers, fall victim to these predatory lending practices.
Many people use these loans to buy food, pay rent, or meet their basic needs. However, the practices surrounding these loans are not well regulated and instead of helping all Indigenous peoples and Canadians, it ends up restricting them in a debt spiral with skyrocketing interest rates of up to 500% (plus hidden fees).
The Federal Government needs to ACT NOW by :
Passing Bill C-213
- to amend the Criminal Code to lower the maximum legal interest rate from 60% to 30%;
- to include, in the calculation of the interest rate, the charges paid by a person to obtain insurance coverage;
- to repeal the criminal interest rate loophole on payday loan agreements;
Adopting Motion M-4
- To establish Cooperative or non-profit Lending Circles to protect low-income and other vulnerable consumers from predatory lending practices;
- To Improve access to fair banking options such as Lending Circles.
Join me to tell the Federal Government to put an end to predatory lending and start helping families.