Press Release
Ontario has lowered the maximum total cost of borrowing for a payday loan from $21 to $18 per $100 borrowed as of Jan. 1.
The province also has introduced legislation to strengthen protections for consumers who use financial services such as payday loans, instalment loans, rent-to-own services, and cheque-cashing services, as well as for those who have debts in collection.
If passed, it would increase protections for consumers in several new ways, including:
•a grace period for repayment for consumers using rent-to-own services;
•an extended repayment period option for consumers who are repeat payday loan borrowers; and
•restrictions on high-frequency borrowing.
