signup for newsletter
What's New
An Open Letter to the Citizens of Niagara Falls Riding
    Craitor to continue to serve as Niagara Falls MPP
    view >>
   
Full-day Learning Coming To 21 Schools In the Niagara Region
    The Ontario Government is Committed to Building A Well-Educated Workforce
    view >>
   
Full-day Learning Coming To 21 Schools In the Niagara Region
    The Ontario Government is Committed to Building A Well-Educated Workforce
    view >>
   
Craitor Asks for Public Inquiry into Death of Fort Erie Teen
    To answer concerns about Fort Erie ER closure
    view >>
   
NIAGARA PREPARES TO WELCOME THE OLYMPIC TORCH
    Ontario Government provides support for community torch relay celebrations
    view >>
   
See All
Provincial News
Test Scores Rise For Ontario Students
    McGuinty Government Preparing Students For Future Success
    view >>
   
Ontario Attracts Clean Energy Manufacturing Plants
    McGuinty Government Brings Investment and up to 1,400 Jobs To Ontario
    view >>
   
Keeping Drivers Safe
    McGuinty Government Implements New Drinking And Driving Measures
    view >>
   
Consultations Begin On Public Sector Compensation
    McGuinty Government Takes Next Step In Plan To Manage Responsibly
    view >>
   
Province Takes Action on Eco Fees
    McGuinty Government Committed To Keeping Household Hazardous Waste Out Of Environment
    view >>
   
See All
Ontario Protects Payday Loan Users McGuinty Government To License Lenders, Protect Consumers

Ontario is taking steps to provide additional protection for users of payday loan services.

Beginning April 1, 2009, users of payday loans will benefit from stronger consumer protections in the Payday Loans Act, 2008. The legislation will:

  • Require payday lenders and loan brokers to be licensed, starting on April 1, 2009.
  • Prohibit certain industry practices, including “rollover” loans, effective July 1, 2009.
  • Give payday loan borrowers a two-day “cooling off” period to cancel a loan with no reason without incurring a penalty, effective July 1, 2009.
  • Establish an Ontario Payday Lending Education Fund, paid for by licencees.
  • Set a maximum total cost of borrowing cap for payday loan agreements in Ontario of $21 per $100 borrowed, as recommended by Ontario’s Maximum Total Cost of Borrowing Advisory Board.

 

The legislation also provides for enforcement and prosecution of violations and the ability to revoke, subject to appeal, the licenses of payday lenders and loan brokers.

Read about the Payday Loans Act, 2008 and its regulations.

Read about the Maximum Total Cost of Borrowing Advisory Board’s report on an upper limit to the total cost of borrowing for payday loan agreements in Ontario.