Payday Loans Bill of Rights

Thinking about getting a payday loan?

As a consumer in Ontario, you have rights.

Here's a checklist to keep in mind when you get a payday loan.

Payday lenders must place certain information on the first page of your payday contract. This includes:
- The amount you are borrowing
- The number of days your loan agreement is for (for example, ten or 14 days)
- The amount you will pay for your loan (your "total cost of borrowing").

Starting on July 1, 2009, advertisements for payday loans that mention the cost of borrowing must also give you certain additional information, such as what the cost of a loan would be if you borrowed $300 for 14 days.

Ontario has set a maximum on the total cost of borrowing that payday lenders can charge consumers who enter into a payday contract. Payday lenders can charge no more than $21 for every $100 that a consumer borrows.

Starting on July 1, 2009, "rollover" loans are prohibited in Ontario. "Rollover" loans are when you have one payday loan, and before that loan is paid off in full, you receive another payday loan from the same lender.
Starting on July 1, 2009, no payday lender can ask for or accept from a consumer an assignment of the consumer's wages.

Starting on July 1, 2009, you will have two business days to cancel your payday loan agreement without penalty. You do not need to give a reason for canceling.

Starting on July 1, 2009, no payday lender or loan broker may communicate with a consumer in a manner that constitutes harassment.
For example, the payday lender or loan broker:
- Can try to contact you a maximum of three times a week only (not counting regular mail),
- Cannot use threatening or intimidating language, and
- Cannot use excessive or unreasonable pressure.

Your payday lender must give you your loan money when you enter into the payday contract. Starting on July 1, 2009, if your payday contract is entered into on the internet or over the phone, the payday lender has one hour to give you your loan money.
Starting on July 1, 2009 your payday lender cannot subtract any fees from the amount of your payday loan. For example, if your loan is for $300, you are entitled to receive $300. The payday lender cannot reduce the amount given to you due to fees.

If you have any questions about payday loans and your rights, please contact the Consumer Protection Branch or call 1-800-889-9768 or (416) 326-8800.