# learning by doing not just \"sharing\"

October 18th, a new law about limits on payday advance cash charges will be applied in Manitoba, Canada. After two years of debate over the regulations, the government has set a start date. Payroll loans already have limits this ads to in other provinces. Source of article - New money lenders limits in Canadian provinces by Personal Money Store.

Payday loan limit in Manitoba

$ 17 per $ 100 is the limit on quick payday cash. Manitoba's Public Utilities Board recommended this rate to be the law. Though the PUB originally tried to implement these rules, a Manitoba court of appeals required the government to enforce the rules. Manitoba also needs that less than 30 percent of a paycheck can be put into a payday loan. $ 17 is intended to be after counting fees and charges.

Questioning who's in charge?

It took the federal government a long time to finally discuss Manitoba's new regulations. Two years of waiting was mostly because of The Cash Store. The company wanted to know whether it was appropriate for the Public Utilities Board to make the limits. The lawsuit in place was settled by many of the recommendations of the board.

Canadian limits elsewhere

Pay day products were regulated in 2006 by the provinces in Canada. Maximum rate limits were already set in British Columbia, Ontario, Alberta, Saskatchewan, and Nova Scotia. For $ 100, the maximums tend to be between $ 21 and $ 31.

Canadian companies with paycheck loans reaction

The Canadian Payday loans no fax Association already gave their response on all the Manitoba new limits. A $ 100 loan costs about $ 26 for most payday payday loan companies in Canada. Because of all the defaults made along with how short the loan is out, profit can't be made off the loan consistently.