Released on December 7, 2009
The Saskatchewan government will be regulating the business of payday lending in the province by capping the interest rate on borrowing.
Payday lenders will be held to a maximum of 23 per cent of the principal, or $23 per $100 loaned. This rate is the same as legislated in British Columbia and Alberta.
The final decision on the rate will now allow for consultation on proposed regulations under The Payday Loans Act, which was passed in 2007.
"The rate provides a balance between protection for consumers and allowing a rate of return for payday lenders," Justice Minister and Attorney General Don Morgan said.
Consultations will begin immediately. The Act will come into effect once regulations are passed and a designation is received from the federal government.
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For more information, contact:
Laur'Lei Silzer
Justice and Attorney General
Regina
Phone: 306-787-0775
Email: laurlei.silzer@gov.sk.ca