Canada Cracks Down on High-Interest Loans: What You Need to Know
As the new year begins, the Canadian government has introduced a significant change in the lending landscape, making it a criminal offence to offer high-interest loans. This move, although aimed at protecting consumers, has raised concerns among industry groups that it may inadvertently drive Canadians towards black market loan sharks. With the goal of curbing predatory lending practices, Ottawa's crackdown on high-interest loans is expected to have far-reaching implications for both lenders and borrowers. As the country navigates this shift, it's essential to understand the potential consequences, including the impact on alternative lending options and the risk of increased debt trap. The high-interest loan landscape is poised for a significant overhaul, and Canadians are advised to be aware of the changes and their potential effects on personal finance and credit score. Key terms like payday loans, predatory lending, and debt consolidation are likely to become more prominent in the conversation, as consumers and lenders adapt to the new regulations.