Whatever the outcome of an investigation into payday loans, the province still needs to protect consumers, said St. John‚Äôs South Liberal MHA Tom Osborne, who brought the issue up last week in the House of Assembly.
© ‚ÄĒ Telegram file photo
The Royal Newfoundland Constabulary and the RCMP has concluded an investigation into payday loans and forwarded it to public prosecutions, but won‚Äôt comment further, according to a news release today,
According to Section 347 of the Criminal Code of Canada, a criminal rate of interest is one that exceeds annual interest of 60 per cent on credit.
One local payday loan company, however, advertises an annual interest rate of 778 per cent per year and $89.95 in fees for a $300 loan over 14 days.
Most provinces have or are in the process of drafting their own payday loan legislation.
‚ÄúIt‚Äôs incumbent consumers are protected,‚ÄĚ Osborne said.