Payday loan companies will soon be more consumer-friendly.
The Manitoba Legislature has passed amendments that'll place a regulatory framework on the industry -- among other changes, it'll prevent the companies from charging excessive fees.
Portage MLA David Faurschou believes Manitoba is paving the way. He says other provinces are using Manitoba's legislation as a guideline to form their own.
Faurschou explains the payday loans legislation received industry stakeholder and all-party support. He anticipates it'll come into effect next month.
As part of the amendments, consumers won't be allowed to sign over future wages or title loans, and gives them the right to cancel a loan within 48 hours.
The Public Utilities Board will be responsible for setting maximum interest rates.