Report of the Criminal Section Working Group on criminal interest rate

In 1980 the Small Loans Act was repealed. With its repeal came the introduction of section 305.1 of the Criminal Code (now s.347), which created the offence of entering into an agreement or arrangement to receive interest at a criminal rate, or receiving interest at a criminal rate. The challenges that s.347 have presented in other areas - for example, the area of commercial transactions - are well-documented. The purpose of this paper will be to briefly revisit those concerns and to recommend that the Federal Department of Justice, in consultation with the provinces and territories, explore options for reform.