The Government is closing doors on access to a loan.

More closed doors equals less access to money. Facing a cost of living crisis, hardworking Canadians are asking a clear and urgent question: Now What?

"My roof is leaking. I don’t want to choose between fixing my roof or paying my heating bill."

1 in 4

of Canadians who depend on non-prime loans will be affected

8 million

Canadians depend on non-prime loans. If these changes go through, that means roughly 1-in-4 Canadians will have no legal or regulated access to credit.

what is the issue?

The government is planning to reduce Canadians access to money.

Recently, the Liberal government in Ottawa passed legislation restricting access to credit for Canadians by changing the maximum allowable rate of interest. As a result of this change, those with low credit scores may be denied a loan or access to additional credit. For hardworking Canadians, the timing could not be worse. Amid an affordability crisis, the government's proposed changes will have a wide-ranging, devastating impact.

Ontario Association of Chiefs of Police

A Dangerous Vacuum for Criminals to Fill

A study by the Ontario Association of Chiefs of Police, the voice of police leadership in Ontario, and the Canadian Lenders Association, indicates the government’s decision to decrease the maximum allowable rate of interest may lead to an upsurge in illicit financial activities, disproportionately impacting already at-risk Canadians.

The door is
closing on:

Everyday Necessities

Canadian families, including newcomers, rely on non-prime credit for essential expenses such as: groceries, car payments, unexpected bills and consolidating debt.

Safe and trusted alternatives

This government’s changes have the potential to drive Canadians into the hands of undesirable sources of credit such as pawn shops, expensive payday loans, and illegal lenders.

Your financial future

Reducing access to credit not only eliminates a critical source of funds for many families, it also eliminates a key resource that helps Canadians rebuild their credit.

Canada’s financial future

This change has the potential to stamp out an estimated $186 billion of consumer spending from the already struggling Canadian economy.

Canadians deserve better

With inflation at a historic level and the price of living continuing to rise, families across Canada are struggling to make ends meet. In this challenging financial climate: 

  • Canadians should not be forced to make impossible choices.
  • Canadians should not have doors closing on their financial future.
  • Canadians should not be forced to ask: Now What?
contact your mp

Demand answers and accountability

By reducing access to credit, the government believes they’re helping. The exact opposite is true. They are hurting hard-working Canadians. The government needs to hear directly from you about why these changes are wrong and how they will impact you and your family.

Impossible choices

Closed doors.
Impossible choices.

Canadian families across the country are facing a cost-of-living crisis that is becoming unbearable. In this climate, Canadians are forced to make impossible choices behind CLOSED DOORS. Choices they should not have to make.

WHAT THE RESEARCH SHOWS

Government’s proposed policy to have negative consequences for Canadians

Ontario Association of Chiefs of Police

A Dangerous Vacuum for Criminals to Fill

A study by the Ontario Association of Chiefs of Police, the voice of police leadership in Ontario, and the Canadian Lenders Association, indicates the government’s decision to decrease the maximum allowable rate of interest may lead to an upsurge in illicit financial activities, disproportionately impacting already at-risk Canadians.

Rise in illegal predatory lenders: The report shows that with legal, responsible lenders forced out of the marketplace, a void is created for illegal online lenders, operating outside the bounds of Canadian jurisdiction, to fill. Lenders who may exploit and endanger Canadians already at-risk of not making ends meet.

A clear warning: Case studies featured in the report, including examples from Quebec, California, and the UK demonstrate the many negative consequences of interest rate caps, underscoring the potentially disastrous repercussions this policy will have for the broader financial ecosystem, including illegal activity and organized crime.

Centre for Social Justice (UK)

No other options.
No way out.

A wide-ranging study conducted by the Centre for Social Justice in the United Kingdom, entitled “Swimming with the Sharks”, shows that 80% of loan shark victims faced initial rejection from legal and licensed credit sources, leading to:

Forced Entry into Illegal Markets: Limited access to legal credit sources creates a void in the financial support system for vulnerable individuals.

Vicious Cycle of Illicit Borrowing: Rejection drives individuals towards illegal money lending due to desperation for immediate funds.

Pollara Strategic Insights

Vulnerable Canadians most at risk.

This study found that the difference between prime borrowers and non-prime borrowers are striking and that the overwhelming majority of non-prime Canadian borrowers were from vulnerable/disadvantaged demographics.

Non-prime Canadians are three times more prone to anxiety-related sleep loss, with nearly half taking extra shifts to tackle debt.

Six-in-ten non-prime Canadians would worry if the government restricted the ability of lenders to offer loans to people with low credit scores.

75% of non-prime and 58% of prime Canadians worry that people who don’t have access to a loan will turn to illegal loan sharks.

SETTING THE RECORD STRAIGHT

Lenders aren’t to blame – The Liberal Government is.

What the government tells you

“We want to protect Canadians from unfair marketing schemes and high credit fees.”

the truth
What the government tells you

“This move will help all Canadians.”

the truth
What the government tells you

“Predatory lenders can take advantage of vulnerable people in our communities, including low-income Canadians, newcomers, and seniors—often by extending very high interest rate loans.”

the truth
What the government tells you

“Non-prime loans and payday loans are often used as a short-term solution by consumers who face ongoing liquidity issues, perpetuating a cycle of debt.”

the truth
What the government tells you

“For some Canadians, non-prime loans may perpetuate a cycle of debt.”

the truth
What the government tells you

Banks and credit unions currently offer low-cost, small-value credit to Canadians with low- or no-credit histories.

the truth

Stop the Government from closing doors on Canadians’ financial future.

In the News

February 5, 2024

Government of Canada’s Interest Cap Risks Criminal Surge

New research paper from the Ontario Association of Chiefs of Police and the Canadian Lenders Association

January 29, 2024

Federal government to cut off access to loans for millions of Canadians

Changes to drive borrowers to payday and illegal lenders

January 19, 2024

'Unintended consequences': Interest rate cap means some Canadians could lose access to their credit

Some Canadians who have turned to high-interest loans due to not qualifying for traditional credit could lose access to them as the government prepares to pass new laws targeting predatory lenders, according to the Canadian Lenders Association.

January 14, 2024

Non-prime lenders warn thousands of borrowers they could be cut off because of new maximum interest rates

‘While on the surface, reducing the maximum allowable interest rate may sound helpful, this change in fact means many borrowers may no longer be able to access a loan in the future,’ letters state.