Thank you very much for the question.
It is important to know that payday loans really tend to go after extremely vulnerable clients. Currently, the Criminal Code provides for an exception—that is to say that payday lenders can charge interest fees of well over 60%. That can amount to interest costs in the order of 300% for some loans, for example. This is sometimes justified in the community by saying that these are small, risky loans. When we talk about small loans, this exception applies only to loans under $1,500.
The problem is that this really targets extremely vulnerable clienteles. These are situations where people will sometimes have to use these types of loans for basic needs. The costs are so high that, ultimately, because of the additional fees, these people will still need additional loans to be able to cover their needs. So it makes no sense.
Moreover, in Quebec, in principle, this type of loan is not possible. There are other problems with some of the other types of loans, though. I know that this exception applies in other Canadian provinces. In our opinion, since this is aimed at extremely vulnerable clienteles, it is not justified.