In a little-noticed move that industry groups say could drive Canadians into the arms of black market loan sharks, Ottawa has made it a criminal offence to offer loans at any interest rate higher than 35 per cent per year.

The federal government has also capped payday loan fees at $14 for every $100 borrowed.

Although pitched by the Trudeau government as a crackdown on “predatory lenders,” the credit counselling agency Credit Canada warned in a Jan. 2 statement that the actual effect would be to boost business for illegal predatory lenders.