Lower interest rate cap welcomed but sparks concerns over credit access
• Lower interest rate cap of 35% coming, but lenders warn it could cut off access to credit for some borrowers
• Advocates welcome lower rates but say caps could still lead to financial strain, pointing to need for better alternatives
• Lenders and experts say government should work with banks on lower-cost small loan options to fill gap
• Professor advocates government-backed overdraft program up to $500 to provide buffer, along with rate caps
• Credit unions have tried small loan options but limited awareness and speed of access; Vancity sees higher delinquencies but views loans as serving client needs