Introduction of Payday Loan New Rules and Regulations in Ontario
Government Services Minister Gerry Phillips has introduced new rules and regulations here on Monday, 30th april, 2007 that the process of payday loan should be transparent to the general public and the consumers. He also states that Ontario payday loan companies will have to use standardized contracts while hanging large posters in their stores and outlets writing down fees under new rules. Phillips also noted the Ontario government is asking the public to submit responses on whether the industry needs to be more tightly regulated.
The new payday loan regulation clearly states that the lending process should be clear and lenders are advised to give advance payments to consumers immediately after signing the contract.
"Now that the federal government has chosen to hand this responsibility to the provinces, Ontario is acting to provide appropriate consumer protection measures for payday lending," Phillips said in a statement.
The provinces were recently handed the power to manage the payday loans industry under newly passed federal legislation. British Columbia, Manitoba, Saskatchewan and Nova Scotia have already introduced new legislation to regulate the industry.
According to The Ontario government estimates there are between 1,300 and 1,400 short-term loan, payday loan or cash advance outlets across Canada in which major proportion that approximately 700 payday lenders are located in Ontario only.
Moreover, this new federal regulation is expected to expand in all other provinces and territories throughout Canada and the general public is really appreciating the government effort which on one side have been introducing the transparent and standardized lending process to the highly income industry of payday loan by the government checks and measures over the lenders while protecting the low income group and the people who need quick and instant cash in their emergencies.
Future Shops of Payday Loan
Usually its a marketing practice that banners, flyers, boards, small, medium and sky high advertisements, campaigns etc., are promoted while highlighting the opportunities and offers spelling nice, bold, using bright and attractive colors focusing maximum benefits, and on the other hand liabilities are written like an unnecessary thing in a corner and above all there is always and mostly it require your visit or a telephone call for more information, and most people don't understand till they have not gone through from all the process themselves. But it sounds great while a revolutionary and productive change is been happening by the federal government's new policy which have created a shape of regulation and moreover, the words of Gerry Phillips for the people who represents the maximum payday consumer market with definitely more payday loan lenders than in an other Canadian province and territory will be really appreciating and helpful for the consumer while understanding their right and also suggesting lenders to breakup their business expenses more clearly, concise and prominent directly to the consumer and indirectly through their marketing media, what so ever. The future shops for payday loan and cash advance will definitely not even sound different but it'll be visualize differently in the upcoming days in Canada.
