Bill C-26 was given royal assent and came into force on Thursday, resulting in greater consumer protection for Canadians who use the services of the pay-day lending industry.

“I am committed to consumer protection,” said federal Minister of Industry Maxime Bernier. “These changes will give the provinces and territories the opportunity to protect pay-day lending customers appropriately.”

Bill C-26 amends the Criminal Code of Canada and provides the provinces and territories with flexibility in regulating the pay-day lending industry.

“More and more Canadians are making use of the services of payday lenders,” said federal Minister of Justice and Attorney General of Canada Rob Nicholson. “With the passage of Bill C-26, our government has taken the necessary steps to ensure that this industry can be regulated.”

Under Bill C-26, pay0day lenders who operate in provinces or territories with measures in place to protect borrowers who enter into payday loan agreements will be exempt from section 347 of the Criminal Code of Canada. This exemption enables the provinces and territories to set limits on the cost of borrowing and regulate the business practices of pay-day lenders within their jurisdictions.