Momentum was excited to hear that the Government of Canada, in their 2023 Budget, included working to lower the criminal rate of interest (CRI). Momentum has been a long-time advocate for lowering the CRI and creating more protections for consumers against high-cost credit. Here is an overview of past advocacy publications by Momentum:

2014: The Real Cost of Payday Lending

2015: Opportunities for Provincial Action on Payday Lending

2017: High-Cost Alternative Financial Services

2021: Creating Change: Momentum’s Contribution to High-Cost Credit Reform in Alberta

2021: Revising the Criminal Rate of Interest in Canada

2022: Consultation on Fighting Predatory Lending by Lowering the Criminal Rate of Interest

And our most recent 2023: Consultation on Cracking Down on Predatory Lending Faster by Further Lowering the Criminal Rate of Interest and Increasing Access to Low-Cost Credit

We know that many Momentum participants have, when times got tough, turned to high-cost lenders. The recent move to lower the CRI from 47% to 35% is a step in the right direction. However, we know that more is needed.

In our submission to the Federal Government we recommend improving: affordability of credit products to help consumers improve their financial position; transparency to ensure consumers have access to easy-to-understand information about the financial products they are purchasing; and accessibility so that people have access to low-cost credit.

The Government is welcoming your thoughts on what actions can be taken to improve, promote, and support access to low-cost, small-value credit. Submissions are being accepted until January 7th. (The webpage says the deadline is Nov 30th, but it has been extended.)

We welcome Momentum partners, participants, or anyone in the public to make a submission either by answering any or all the questions provided in the submission. 

For any questions, please reach out.