A local licenced insolvency trustee is welcoming proposed legislative changes to improve consumer protections surrounding high-cost credit lending.

The proposed amendments to the Consumer Protection and Business Practices Act include improved disclosure requirements, the prohibition of undisclosed fees and the prohibition of giveaways to encourage customers to take out loans and automatic payment deductions from a borrower’s paycheck.

David Buckingham, a Licensed Insolvency Trustee with Janes and Noseworthy, says the regulations will help consumers gain a greater understanding of what exactly they’re signing up for including the terms of the loans they’re taking out and the total cost of borrowing.

The province is also proposing a four-day “cooling off” period to allow the borrower to back out of a loan within four days without penalty, but Buckingham is not sure that provision will make much of a difference for some borrowers.

He says many people reach out to that type of lender as a last resort, and often need the money to pay rent, their mortgage or car payment. He suspects many borrowers may have the money spent within that four-day period.