Criminal Interest Rates in Canada and Payday Loans

By Benedict Feist|January 11, 2018|Uncategorized|

Payday loans and other quick cash businesses typically charge high rates of interest in comparison with secured loans. In Canada there is a criminal rate of interest which is defined under the Criminal Code. Payday loans are specifically exempted from these provisions. According to section 347(2) of the Criminal Code: "criminal rate means an effective annual rate of interest calculated in accordance with generally accepted actuarial practices and principles that exceeds sixty per cent on the credit advanced under an agreement or arrangement" In accordance with section 347(1) of the Criminal Code, 347 (1) Despite any other Act of Parliament, every one who

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