A big part of my role as Minister of Government and Consumer Services is to be a champion of consumer advocacy – and it’s a role I take very seriously.

Over the past few weeks, I have had the pleasure of introducing some of the toughest and most innovative consumer protection initiatives that our province has ever seen.

On March 31st, I introduced the Payday Loans Act.  This legislation, if passed, would provide a fair and balanced approach to regulating the payday lending industry in Ontario.  It would protect thousands of Ontarians who, from time to time, rely on payday loans to help them through a short-term financial squeeze and it would encourage payday leaders to be transparent, consistent and fair when dealing with Ontario consumers.

Early on, it became very clear to our government that consumers needed the cold, hard facts about payday loans in order to make wise choices.

Our proposed legislation takes the proactive approach of creating and operating an organization devoted to educating consumers about financial management and the perils of high-cost credit.  The payday leaders themselves would pay for this, with the establishment of an Education Fund for financial planning.

The truth is that we need to protect all consumers, particularly vulnerable consumers, from any unethical business operators.  That’s why our Payday Loans Act, if passed, would contain the toughest payday leading rules in the country.  It would also impose serious penalties for lenders who break the law.

Under the proposed Act, payday lenders would be prohibited from making concurrent and back-to-back-loans.  Borrowers would also be able to cancel loan agreements without penalty within forty-eight hours.  This proposed legislation would also require all lender and brokers to be licensed.

Under our proposed Payday Leading Act, we would also set a maximum total cost of borrowing cap to limit the amount payday lenders can charge.

This spring, we will set up an independent advisory board to examine the costs of payday loans and recommend a cap on total costs of borrowing.  The members of the board will be drawn from the business community, the poverty advocacy sector and the academic world.

If passed, our Payday Loans Act will increase public confidence in the integrity of the industry and would also discourage the cycle of debt dependency, especially for those Ontarians who can least afford it.

Another way our government is protecting consumers is though our new awareness campaign aimed at youth and young adults

Our recently announced awareness campaign will target young consumers in secondary schools, colleges and universities and in the workplace.  Using the internet, educational tools and a “roadshow” for schools and community centres, we will provide our young people with the information they need to better manage their money, understand credit and its many risks, and protect their identities online.

Every day, our government is committed to making sure Ontario’s marketplace is safe for all Ontarians.  I encourage you learn more about what we are doing to protect consumers at www.ontario.ca/consumerprotection