Manitoba Changing Direction on Payday Loan Legislation

For those of you following along with the payday loan legislation adventure that is unfolding in Manitoba, a recent Vancouver Sun article has a few quotes from Manitoba Finance Minister, Greg Selinger indicating the new direction that the province is heading in:

"When one company, The Cash Store, won the right to appeal the cap — which had been set by Manitoba Public Utilities Board after a thorough examination of the industry — Selinger refused to let the issue be stalled. He promptly made plans to plug the loophole. 'We’re going to legislate the cap,' he told me. 'We’re not going to let it be tied up in the courts for a couple of years. 'As policy-makers we can do things a quasi-judicial body like the Public Utilities Board can’t.'"

It will be interesting to see what rate the 'policy-makers' choose to go with. The Public Utilities Board is being called out by the courts for possibly overstepping its jurisdiction by setting a rate so low that it will drive the majority of lenders out of the market. The Manitoba government, presumably free to set whatever rate they want (subject of course to whatever court challenges may arise) have the opportunity to set a rate that differs from the PUB's competition stifling approach. Borrowers who enjoy the ability to choose will certainly be hoping that they take a new direction.