Ontario to pay less for payday loans

Quickcheck Canada
January 5, 2017

Effective January 1, 2017, Ontario residents will pay less to borrow monies from payday loan operators. The cost of borrowing for a payday loan has been reduced from $21.00 to $18.00 per $100.00 dollars borrowed. The changes come into effect under regulations made to Ontario's Payday Loans Act.

Donna Borden, a member of the consumer advocacy group ACORN says "We are pleased that the government is moving forward with lowering the interest rates on payday loans to 18 percent. While ACORN wanted it lowered to 15 percent this year, we have confidence that the government will follow through with their promise to lower the rate to 15 percent in 2018." In August of 2016 the Ontario Government announced its intention to reduce the cost of borrowing further to 15 percent effective January 1, 2018.

The cost of borrowing has also been reduced in other provinces as well. Manitoba and British Columbia have both capped the fee at $17 per $100 borrowed, and Alberta, has reduced the cost of borrowing to $15 per $100 borrowed, which is currently the province with the lowest fee at payday loans. Quebec has restricted the fees that payday lenders can charge that the province has effectively banned the industry in the province.

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