On January 29, the us government of Ontario circulated its assessment paper on managing Alternative Financial Services (AFS) and credit that is high-cost en titled “High-Cost Credit in Ontario: Strengthening Protections for Ontario Consumers” (Consultation Paper).
What you should know
- Growing in popularity, AFS are high-cost economic solutions provided outside of old-fashioned finance institutions like banking institutions and credit unions. Common AFS offerings consist of pay day loans, instalment loans, credit lines, and automobile name loans.
- The Consultation Paper seeks input on developing a high-cost credit definition, licensing high-cost credit providers, managing costs, charges and costs, and imposing disclosure, cooling-off duration and business collection agencies needs, amongst others.
- The federal government isn’t thinking about the legislation of high-cost credit given by banking institutions or credit unions, and pay day loans would keep on being controlled underneath the payday advances Act and its own laws.