WHITE COLLAR USURY: ANOTHER LOOK AT THE CONVENTIONAL WISDOM

Abstract

Section 347 of the Criminal Code provides that it is an offence to charge a rate of interest on a loan in excess of sixty per cent per annum. In civil cases, even in cases involving experienced and sophisticated borrowers and lenders, the courts have been prepared to deny recovery of interest where the "criminal" rate of interest is exceeded. This article considers some of the issues that have arisen in those cases. It concludes that the courts have applied section 347 quite rigourously and that, while there are aspects of the law which require clarification, the approach of the courts is on balance justifiable .