Momentum recently made a submission to the Federal Government on “Cracking Down on Predatory Lending Faster”, we were excited to hear that the Government of Canada included lowering the Criminal Rate of Interest (CRI) from 48% to 35% in their 2023 budget. We support changes that make credit options more affordable for everyone. 

In late December 2023, the Government of Canada published proposed regulations that explain how the recent change to lower the CRI will be implemented. In these draft regulations, we are concerned about the exemption of pawn loans from the Criminal Rate of Interest. Excluding pawn loans means lenders would still be able to charge more than the CRI. 

We have heard stories about borrowers getting trapped in Pawn Loan debt, losing important items in the process, having to reborrow to afford the loan or to get their item back, among other concerns with pawn lending. Momentum is preparing a submission to the Federal Government’s ongoing consultations, which close on January 22nd, 2024 and we would like make sure your experience is heard! 

Have you ever taken out a pawn loan? Do you think these loans should be allowed to charge a higher interest rate? We want to hear from you! We hope your comments and experience can help inform our response to government.

Momentum will be hosting a community conversation on January 17th at 12:00 Noon to 1:00 PM to hear your opinions on pawn loans! You can join us in person at Momentum (#100 525 28th St SE, Calgary) or Online. Tea, coffee and a light snack will be provided. 

To register, or to tell us about your pawn loan experience or concerns, email publicpolicy@momentum.org before January 16th.