Under Section 347 of Criminal Code, it is an offence to enter into an agreement or arrangement to receive interest, or actually receive interest, at an effective rate exceeding 60% annually.
On March 28, 2023, the Government of Canada presented a new budget. As part of the budget the government indicated that it was their intention to introduce changes to the Criminal Code to lower the criminal rate to 35 percent.
There are numerous scams, often directed at the elderly which are fraudulent in nature but just fall below the 60% interest rate.
Hopefully, this reduction will help, but, as always, I’m sure the criminals will find another way.
Brian Madigan LL.B., Broker