One of the most regulated industries in Canada is the payday loans financial services. The government does not take these services lightly at all, and they are always putting in place measures to ensure that consumers get the best. Another important thing that these regulations hope to achieve is prevention of exploitation of consumers by these payday loan providers. It has become common knowledge that a lot of payday loan providers normally take advantage of the difficult situations consumers find themselves in to charge them exorbitant interest rates on the small loans they request for. This is so because they normally know these consumers who majority of them are usually low income earners will still opt for the loans, because they are desperate and they do not have many options at their disposal. Payday loans Canada are certainly one of the industries in Canada that their regulators are doing a good job.

Before the commencement of the directive by all payday loans providers to reduce their interest rates charged for the payday loans taken by consumers, there was a jamboree of free for all where any payday loan company or provider charged whatever interests they wanted for any loan taken from them. As bad as this may sound people were still patronizing especially because of the awful situation most of them found themselves in. This continued until it became apparently clear that consumers were being exploited. It was at this point that the government was compelled to step in to issue out warnings and to wield the big stick. It was at this point that payday loans Canada began to experience some kind of relief and sanity by the providers became a little bit evident.

One of the giant steps taken by the regulators and the government to protect consumers was to pass into law regulations that prevented payday loan providers to charge interests above 23 percent on any of payday loan. Everything including both interest and fees according to the law is not expected to exceed 23 percent. The regulators of payday loans Canada also gave consumers some sort of powers to ensure that they are not exploited or taken advantage of. This privilege was granted based on the premise that consumers were either given little or no opportunity to have reasonable negotiating powers. The regulators made provisions in the law that allowed loan consumers the privilege to cancel their loan agreement the within following 24 hours without paying any fee, if they were no longer interested in getting the loan.  

Litigations about payday loan companies abound all over the place. One of the triggers of these litigations is because of the consumer protection laws that are rather considered stern. It made many consumers pursue litigations with payday loan providers. Another side of this flurry of court cases against payday loans providers that cannot be waived away is the speculation that a lot of consumers pursuing litigations with payday loans Canada are hoping to make so much money from legal claims if they win such cases.