The CAQ government proposes a bill against negative credit contracts

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QUEBEC – Justice Minister Simon Jolin-Barret said Wednesday that he plans to draft legislation within a year to combat negative credit contracts such as credit cards and mortgages.

He made the announcement during an exchange with Liberal National campaigner Michelle Setlakwe as part of an inquiry into consumer protection budgets at the Ministry of Justice.

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Jolin-Barrett said she was inspired by Bill 199, “An Act to Better Protect Consumers from Abusive Credit Contracts,” introduced last year by Liberal MNA Marwa Rizki.

Rizki's bill – never proposed by the government – proposes to regulate interest rates on various loans, as in France, to protect borrowers from excessive rates.

A consumer who violates a credit agreement can claim its invalidity or demand reimbursement of credit costs, and a merchant who agrees to a negative credit agreement is liable to pay a penalty.

In a parliamentary committee, Setlakwe asked Jolin-Barrett to act, arguing that Quebecers are currently suffocating from rising living costs.

“Everything is more expensive. The ratio of interest will be very important. “Quebecers are spiraling into debt, taking out loans or loans, and the interest rates are almost impossible to pay off the balance,” he said.

“Last year, the minister was open,” he said. “Can the minister give us news after fourteen months?” Does he plan to introduce the measures proposed in Bill 199?”

Jolin-Barrett replied that she found the question “absolutely relevant”, especially in the face of inflation. He said he found “many elements” in Bill 199 that were “inspiring”.

“It's something we've been working on for a while. These are legislative measures that can be studied together in the medium or short term,” he said.

“I think it's important to really adequately restrict access to credit without revealing state secrets, because there is abuse.

“For the most part, people who get short-term loans at very high rates with many conditions. “These are people who are in a very financially vulnerable situation,” he said.

He explained during the exchange with Setlakwe that he intended to enact legislation within a year.

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