Ontario reducing cost of borrowing for payday loans

As anticipated, Ontario is lowering the maximum total cost of borrowing for a payday loan from $21 per $100 borrowed to $18 per $100 borrowed, effective January 1, 2016. Ontario is also proposing additional amendments to the law governing payday loans (under Bill 59, Putting Consumers First Act (Consumer Protection Statute Law Amendment), 2016), which, if passed, would introduce optional extended prepayment periods for repeat borrowers, restrictions on high-frequency borrowing, and establishing standards or factors that payday lenders have to take into account when determining whether a borrower has the ability to repay. Bill 59 has passed second reading and is currently with the Standing Committee on Social Policy.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s