The Consultation Paper considers a regulatory framework for high-cost financing this is certainly just like the lending regime that is payday.
We identify underneath the key areas of the proposition as well as for contrast purposes have actually supplied some details regarding QuГ©bec’s framework.
Disclosure demands: The Ministry proposes improved demands for loan providers to reveal and review crucial conditions and terms of high-cost credit agreements with borrowers to make sure clear, simple and easy transparent disclosure of rates, costs as well as other key loan features. Particularly, the Consultation Paper proposes:
- Strengthened disclosure requirements for credit agreements which mimic those within the PLA; and
- Disclosure needs for optional services and products ( e.g., to be able to guarantee customers recognize that a loan can nevertheless be bought minus the responsibility to acquire such optional solutions, also to make sure borrowers comprehend the price of the optional items or solution, that might be quite high in accordance with the benefit that is potential the debtor).