That’s the government’s estimate of the cost of the market failure it claims to have identified. [...] Four million seems high to me, but it’s a fair assumption the number of Canadians who will lose access is considerably more than the 93,000 assumed by the government’s cost-benefit analysis. [...] The lenders’ position is that the interest rates being charged do not represent a market failure but are appropriate given the risk profiles of non-prime borrowers. [...] A study of Illinois’ decision to cap rates at 36 percent showed a big drop in the number of non-prime loans – almost double the corresponding increase in prime loans – and a reduction in the average amount lent to non-prime borrowers who did still receive a loan. [...] Jeremy Kronick is associate vice-president and director of the Centre on Financial and Monetary Policy at the C.
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