Manitoba reviews payday loan fees as consumer group calls for stricter regulations

A consumer advocacy group is urging the Manitoba government to regulate high-interest payday loans. The Public Utilities Board is reviewing fees and charges, proposing to lower the maximum fee from $17 to $14 per $100 loan, effective January 1, 2025. The board will also consider reducing the maximum loan amount to 25% of a borrower's net pay, down from 30%. This is the first review since 2016, as the previous government did not initiate any assessments in 2019 or 2022. The Canadian Consumer Finance Association argues against changes until the impact of new federal regulations is evaluated. They claim existing rules have already led to store closures and emphasize the need for payday loans for those without access to traditional banking.