NDP MPP Cheri DiNovo today, tabled a Private Members Bill titled The Payday Loans Act, 2008 that governs payday loans by setting a 35 per cent cap on interest rates. DiNovo introduced the same bill last year.

DiNovo says the McGuinty government’s payday loan law that was introduced last week does not go far enough to protect consumers and continues to allow criminal interest rates.

“Although the McGuinty government has followed the NDP’s lead by taking some advice from the bill I tabled last year,” said DiNovo, “they completely missed the most important aspect – a cap on interest rates.”

Research shows that interest rates by payday loan operations, when extrapolated to annual levels, range between 390 and 891 per cent or more. The majority of these payday lending outlets are located in economically-needy neighbourhoods where many residents struggle to get by.

“This government continues to allow criminal and unethical behaviour where payday lending companies charge exorbitant interest rates and take advantage of poor communities,” said DiNovo. “The legislation I am re-introducing today will end predatory lending practices in this province.”