New Limits on Predatory Lending, But More Work is Needed

ACORN Canada welcomes the new federal legislation capping interest rates on high-cost loans at 35% APR, effective January 1, 2025, as an important step in addressing predatory lending. This victory follows years of grassroots advocacy by ACORN and other organizations fighting to protect low- and moderate-income Canadians from exploitative lending practices.

In addition to these reforms, ACORN is advocating for the federal government to fulfill its commitment to cap non-sufficient funds (NSF) fees at $10, a move expected to save Canadians an estimated $5.1 billion over the next decade! Despite the big six Canadian banks reporting record-breaking profits of over $51 billion in 2024, they continue to resist regulatory reforms that would ease the financial burden on workers.

As ACORN members across the country celebrate the progress made in limiting predatory lending, we renew our call to the federal government to:

• Implement the $10 NSF fee cap without delay.
• Introduce protections that prevent financial institutions from charging fees on small overdrafts under $10.
• Ensure timely enforcement of these measures to avoid delays that could jeopardize their implementation before the next federal election.

Sign our petition to demand Finance Minister Dominic Leblanc keep his commitment to protecting low and moderate-income people.

…and check out New Brunswick Media Co-op’s story on how predatory lending impacts ACORN members, produced in part by our own Peter Jongeneelen, co-chair of ACORN New Brunswick.