The Globe and Mail reports in its Monday, Jan. 15, edition that hundreds of thousands of Canadian borrowers will be receiving letters from their non-prime lenders, warning they could soon lose access to credit because of new federal restrictions. The Globe's Bill Curry and Stefanie Marotta write that the letters, sent to clients of the more than 300 companies represented by the Canadian Lenders Association (CLA), alert clients to potential negative consequences resulting from federal plans to lower the allowable rate of interest. The 2023 federal budget vowed to ensure that payday lenders can charge no more than $14 per $100 borrowed. The government presented the package as a crackdown on predatory lending. It has strong support from antipoverty groups. Payday loans are defined in the Criminal Code as an advancement of money in exchange for a postdated cheque or similar form of future payment. Payday loans must be less than $1,500. They are exempt from the criminal interest-rate rules, with conditions, according to a 2007 legal change. goeasy chief executive officer Jason Mullins said the impact of the government's change will actually drive more people to payday lenders at even higher interest rates.