Starting on January 1, 2018, it will cost $15 for every $100 that you borrow from a payday loan company in Ontario.
Starting on July 1, 2018:
- lenders cannot lend you more than 50% of your net income per loan
- lenders must show the cost of borrowing a payday loan as an annual percentage rate in advertising or agreements
- the maximum fee that cheque cashing services can charge for government-issued cheques is
Beginning July 1, 2018, lenders must give you the option of an extended payment plan if you take out three loans within a 63-day period.
If you enter into an extended payment plan, you can:
- make prepayments at any time without any additional fee or penalty
- exit the extended payment plan at any time without any additional fee or penalty
You have the option to pay back your loan in equal instalments over multiple pay periods. The amount you pay back per instalment will depend on how frequently you are paid.
If you are paid weekly, bi-weekly, semi-monthly or more frequently:
- your instalments must be spread out over at least three pay periods the maximum amount of each instalment is 35% of the combined total of the loan and cost of borrowing
If you are paid monthly or less frequently than semi-monthly:
- your instalments must be spread out over at least two pay periods the maximum amount of each instalment is 50% of the combined total of the loan and cost of borrowing
If you believe that a payday lender has broken the rules, you can file a complaint with Consumer Protection Ontario.
