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Senate Bill

Bill S-239

44th Parl. 1st Sess.
April 20, 2023
An Act to amend the Criminal Code (criminal interest rate)
  • Bill S-239 is an amendment to the Criminal Code in Canada. It aims to reduce the criminal rate of interest from 60% to the Bank of Canada's overnight rate plus 20%. This change would affect the interest rates charged on credit advanced under agreements or arrangements. The amendment will come into force 60 days after receiving royal assent. This bill is designed to protect borrowers by lowering the maximum interest rates that can be charged on loans.
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SteelmanSpren in Favour

  • Steelman Argument: "Bill S-239 proposes an amendment to the Criminal Code that reduces the criminal rate of interest from 60% to the Bank of Canada’s overnight rate plus 20%. This change aims to strike a balance between protecting consumers from exploitative lending practices while also allowing for fair lending practices. By linking the criminal interest rate to the Bank of Canada’s overnight rate, the amendment ensures that the criminal rate remains reflective of current economic conditions. This change will provide clarity for lenders and borrowers, as they will be able to determine the maximum allowable interest rate based on a transparent and objective benchmark. Additionally, the reduction in the criminal rate will discourage predatory lending practices that disproportionately affect vulnerable individuals and contribute to cycles of debt. By setting a reasonable interest rate cap, this amendment supports responsible lending and f

SteelmanSpren Against

  • One steelman argument opposing this proposed amendment to the Criminal Code would be that it could have unintended negative consequences on lending practices and access to credit. By reducing the criminal rate of interest from sixty per cent to the Bank of Canada's overnight rate plus twenty per cent, there is a risk that it could discourage lenders from providing loans to individuals with higher risk profiles or in need of emergency funds. Lenders rely on interest rates to compensate for the risks associated with lending money. By lowering the maximum allowable interest rate, lenders may be less willing to provide credit to individuals who may be seen as higher risk borrowers. This could result in reduced access to credit for those who need it most, particularly individuals with low credit scores or limited financial resources. Furthermore, this could also have negative implications for the lending industry as a whole. If lenders ar
Senate First Reading
  • March 22, 2022, 2 p.m.
  • In Progress
  • Read