Criminal Code of Canada - section 347.1(4) - Revocation

section 347.1(4)

INTRODUCTION AND BRIEF DESCRIPTION

This section outlines the circumstances under which the Governor in Council must revoke the designation made under subsection (3) of Section 347.1.

SECTION WORDING

347.1(4) The Governor in Council shall, by order, revoke the designation made under subsection (3) if requested to do so by the lieutenant governor in council of the province or if the legislative measures described in that subsection are no longer in force in that province.

EXPLANATION

Section 347.1(4) of the Criminal Code of Canada outlines the process by which the Governor in Council can revoke a designation made under subsection (3). Subsection (3) outlines the criteria that must be met for a province to be designated as having legislative measures in place to regulate payday lending. To meet the criteria, a province must have in force legislative measures that provide for the licensing, regulation, and disclosure requirements of payday lenders, as well as provisions for the protection of borrowers, such as limits on interest rates and fees. If a province no longer meets these criteria, or if the lieutenant governor in council of the province requests the revocation of the designation, the Governor in Council must make an order to revoke it. This means that payday lenders in that province would no longer be subject to the federal regulation under the Criminal Code of Canada. This section is important for protecting borrowers from predatory lending practices. By only allowing designated provinces to regulate payday lending, the federal government ensures that borrowers are protected by strong regulations that cover all lenders operating in the province. The ability to revoke the designation ensures that the federal government can respond to changes in provincial regulations or the need for increased protection for vulnerable borrowers.

COMMENTARY

Section 347.1(4) of the Criminal Code of Canada deals with the revocation of the designation made under subsection (3). Subsection (3) provides for the designation of a province for the purposes of exempting from the application of the criminal interest rate provisions of section 347 of the Criminal Code of Canada, the provincial legislative measures on payday loans that contain certain consumer protection measures. The Governor in Council may make such a designation where satisfied that the legislative measures adopted by a province provide for adequate protection to borrowers and are consistent with the criminal interest provisions of section 347. This is a significant provision because it recognizes the importance of consumer protection in the context of payday loans, which are typically small-dollar loans that are marketed as short-term solutions for unexpected expenses. Many consumers who rely on these loans do not have access to traditional forms of credit and may be vulnerable to financial exploitation. The criminal interest rate provisions of section 347 are intended to prevent lenders from charging excessive interest rates on loans, which can lead to debt traps and other harms. However, the payday lending industry has faced criticism for exploiting vulnerable consumers by charging high interest rates and fees, and for engaging in practices that trap borrowers in cycles of debt. As such, many provinces have adopted legislative measures to regulate payday lending and provide greater protection to consumers. These measures may include limits on interest rates and fees, requirements for lenders to disclose certain information to borrowers, and provisions for cooling-off periods or repayment plans. Section 347.1(4) recognizes that the designation of a province under subsection (3) is not an indefinite matter and provides for its revocation under certain circumstances. The lieutenant governor in council of a province may request the Governor in Council to revoke the designation made under subsection (3) if they believe that the legislative measures described in that subsection are no longer in force or do not provide adequate protection to borrowers. This provision ensures that the designation of a province is subject to ongoing review and assessment to ensure that consumers are protected from financial exploitation. In conclusion, section 347.1(4) of the Criminal Code of Canada is an important provision that recognizes the importance of consumer protection in the context of payday loans. It provides for the revocation of the designation of a province for the purposes of exempting from the application of the criminal interest rate provisions of section 347 where the legislative measures described in subsection (3) are no longer in force or do not provide adequate protection to borrowers. This provision ensures that the payday lending industry is subject to ongoing scrutiny and regulation to protect consumers from financial exploitation.

STRATEGY

Section 347.1(4) of the Criminal Code of Canada outlines the procedure for revoking a designation made under subsection (3). This section provides significant strategic considerations when dealing with the Criminal Code of Canada. The designation under subsection (3) refers to the licensing of entities to conduct payday loans in the province. One important strategic consideration in dealing with this section is the need for effective and efficient regulatory monitoring of payday loan activities by provincial authorities. The legislative measures described in subsection (3) are in place to ensure that entities engaged in payday lending are licensed by the authorities and comply with provincial regulations. It is important that such measures are enforced since they provide protection to vulnerable consumers who rely on payday loans. Another strategic consideration when dealing with this section is the need for effective advocacy by stakeholders such as consumer advocacy groups, trade associations, and individual consumers. Advocacy efforts can help to ensure that legislatures continually review and enact laws that adequately protect consumers. For instance, advocates could lobby for the introduction of more stringent regulations on payday loans or call for the revocation of designations under subsection (3) in particular provinces if it is determined that appropriate consumer protection measures are no longer in place. Strategies that could be employed to ensure effective monitoring and enforcement of legislative measures relating to payday loans include: 1. Collaboration between provincial authorities and relevant stakeholders for effective enforcement of payday loan regulations. This could involve conducting joint inspections or sharing information, to ensure that companies comply with regulations. 2. Creation of consumer education programs to increase public awareness of payday loan regulations and the negative consequences of ignoring them. 3. Implementation of penalties and fines for companies found violating payday loan regulations, and prosecutions of the offending parties. 4. The introduction of new regulations or amendments to existing regulations to ensure that consumer interests are protected. 5. Establishing a uniform regulatory framework across the different provinces to ensure that consumers receive equal protection against abusive payday loan practices, irrespective of the province where they reside. In conclusion, section 347.1(4) of the Criminal Code of Canada has significant strategic considerations in dealing with payday loans. With the appropriate regulatory measures in place, it is possible to promote responsible lending practices that protect values such as fairness, transparency, and consumer protection. Through effective collaboration among stakeholders and the implementation of appropriate strategies, it is possible to ensure that provincial authorities continuously monitor and enforce regulatory measures designed to protect consumers.