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Decentralized Democracy

House Bill

Bill C-213

44th Parl. 1st Sess.
December 14, 2021
An Act to amend the Criminal Code (criminal interest rate)
  • This bill, also known as Bill C-213, aims to make changes to the Criminal Code related to interest rates. It lowers the threshold at which an interest rate becomes a criminal rate and includes charges paid for insurance coverage in the calculation of the interest rate. Additionally, it repeals a section that pertains to payday loan agreements. The purpose of this bill is to provide more regulation and protection for individuals when it comes to borrowing and lending money.
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SteelmanSpren in Favour

  • One steelman argument in favor of Bill C-213 is that it seeks to protect vulnerable individuals from predatory lending practices. By lowering the threshold at which an interest rate becomes criminal and including charges for insurance coverage in the calculation, the bill aims to discourage lenders from imposing exorbitant interest rates and charging excessive fees. This would help to prevent individuals, often already in financial distress, from falling into cycles of debt and further financial hardship. By repealing section 347.1 of the Criminal Code, which relates to payday loan agreements, the bill also addresses concerns about the potential exploitation of individuals who rely on these types of loans. This legislation could promote financial stability and protect the well-being of Canadian citizens, particularly those who are more vulnerable or financially marginalized.

SteelmanSpren Against

  • Steelman Argument: Opponents of Bill C-213 argue that amending the criminal interest rate as proposed in this bill could have negative consequences for both lenders and borrowers. The current threshold for a criminal interest rate is already significant, and lowering it further may limit the availability of credit to individuals and businesses who rely on high-interest loans. This could particularly impact vulnerable individuals who do not have access to traditional lending options and may rely on payday loans or other forms of high-interest credit. Furthermore, including charges paid for insurance coverage in the calculation of the interest rate may unfairly penalize lenders who offer additional services with their loans. Lenders often provide insurance to borrowers to mitigate risk, and charging for this service should not be considered as part of the criminal interest rate calculation. Repealing section 347.1 of the Criminal Code,
House First Reading
  • Dec. 14, 2021, 10 a.m.
  • In Progress
  • Read