Strengthening Consumer Financial Protection
Bill or Act:
Payday Loans Act, Collection and Debt Settlement Services Act
Summary of Proposal:
The Ministry of Government and Consumer Services is consulting on ways to protect consumers who use high-cost financial products and services outside the mainstream banking and credit union systems (referred to here as alternative financial services), as well as consumers who have debts in collection.
In 2013, the ministry announced a review of the Payday Loans Act. A payday lending panel made a number of recommendations in 2014. The government built on that review to consider other types of high-cost alternative financial services offered outside of the traditional financial institutions of banks and credit unions.
The ministry is now consulting on proposed approaches to improve consumer protection for services including:
• Alternative financial services
• Payday Loans
• Money Transfer Services
• Debt Collection
Each proposal is followed by questions. These questions are designed to highlight areas for consideration, but it is not necessary to answer them when providing feedback. All feedback will be considered as the ministry prepares advice to government on how to improve consumer protection for consumers of alternative financial services and consumers with debts in collections.
The consultation paper describes the proposals in detail, while the shorter guide focuses on highlights of the proposals.
June 15, 2015
Comments Due Date:
August 14, 2015
Consumer Policy and Liaison Branch
Ministry of Government and Consumer Services
777 Bay St, 5th Floor
Toronto, ON M7A 2J3