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Canada: Lowering interest rate cap to 35% to cost jobs and GDP: Industry report
A report commissioned by the Canadian Lenders Association estimates that lowering the maximum interest rate could lead to the loss of tens of thousands of jobs and billions of dollars in GDP. The Ernst & Young LLP report released Tuesday comes as the CLA industry group has been pushing aggressively against the federal government's plan to lower the interest rate cap in the Criminal Code from 47.2 per cent to 35 per cent. The government has said it's moving forward with the lower cap to protect vulnerable borrowers including low-income Canadians, newcomers and seniors from predatory lenders. The CLA has argued that ... (full story)