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Consumer Alert: Ontario Registrar of Payday Loans Bulletin

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Consumer Alert: Ontario Registrar of Payday Loans Bulletin

Ministry of Consumer Services

Consumer protection concerns about payday loans have been in the news lately.


Some licensed payday lenders have started offering short-term credit products to consumers that may be similar to a payday loan, but not called a payday loan by the provider. The Ministry of Consumer Services is currently examining whether these products are subject to Ontario's payday lending rules. If you feel that your rights may have been violated by a payday lender under the Payday Loans Act, 2008, you should contact the ministry at 416-326-8800 or 1-800-889-9768 to get more information or file a complaint.

Ontario's Payday Loans Act, 2008 provides a number of rights and protections for you as a borrower under a payday loan agreement.

Before taking out a payday loan, you should know your consumer rights:

  • You cannot be charged more than $21 for each $100 you borrow. This is called the maximum cost of borrowing.
  • All fees charged when obtaining a payday loan are included in the maximum cost of borrowing. Fees cannot increase your cost of borrowing to more than $21 for each $100 you borrow.
  • You are entitled to receive the full amount of your loan without deductions for any fees or other charges.
  • You are entitled to access the payday loan in cash immediately upon entering into a payday loan agreement. The payday loan lender may offer to provide your loan to you by cheque or debit card. However, they cannot charge you additional fees to do this if the fees increase your cost of borrowing to more than $21 for each $100 you borrow.
  • You have two business days to change your mind and cancel the payday agreement without a penalty.
  • You cannot get a second payday loan from the same payday lender until you pay off the first loan in full.
  • The lender cannot offer you other goods or services (on their own behalf or on behalf of another person), such as insurance, in connection with your payday loan agreement.

In Ontario, payday lenders and payday loan brokers must be licensed by the Ministry of Consumer Services and comply with the provisions of the Payday Loans Act, 2008.

For more information: Director's Bulletin: Payday Loans

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