10 September 2024 • Bill C-69 - Criminal interest rates
Legislative proposals for criminal interest rates under the Criminal Code
Bill C-69 introduced a number of changes to the criminal interest rate provisions. Option consommateurs supports the repeal of section 347(7) of the Criminal Code, which required the consent of the Attorney General before a charge could be laid. We also welcome the amendments that make it an offence under section 347(1) of the Criminal Code to offer or advertise an offer to enter into an agreement with an interest rate that exceeds the criminal rate.
As part of the ongoing consultations, Option consommateurs is submitting its comments on the legislative proposals concerning the criminal interest rate under the Criminal Code.
Option consommateurs proposes the following recommendations:
- Include insurance costs in the definition of interest in section 347(2) of the Criminal Code, in accordance with legislative proposals;
Abolish the exception in section 347.1 of the Criminal Code that allows payday lenders to offer loans with an effective annual interest rate that exceeds the criminal rate;
To promote access to affordable credit :
- Adopting measures to ensure that financial institutions offer low-cost credit products for small amounts;
- Enhance financial support for non-profit organizations offering microcredit and financial education;
- Introducing a requirement for merchants to obtain a license before being able to grant loans.
See also...
Consultation on proposals to strengthen Canada's financial sector
Option consommateurs is calling on the federal government to modify the banks' legal framework to make them more accountable for fraud. In our opinion, it is urgent that the federal government act on this issue to offer consumers real protection against bank fraud.