Payday Loans - Introduction of legislative amendments to protect vulnerable loan borrowersPublished on July 21, 2020
Nothing is more important than protecting the health and well-being of Ontarians.
The government has taken action to protect the province’s most vulnerable consumers by proposing amendments to the Payday Loans Act that will limit the interest rate that may be charged on payday loans in default to 2.5 per cent per month (non-compounded) and set $25 as the maximum fee that payday lenders can charge for dishonoured payments.
These changes will provide relief for some borrowers who may be in greater financial distress during these particularly challenging times.
The government is also conducting a review of the Consumer Protection Act — the first comprehensive review in almost 15 years. As part of the review of the Consumer Protection Act, the government will consider how to better protect vulnerable consumers of alternative financial services that are regulated under that act.
To learn more, click here.