Ontario Caps Payday Loans

Capped payday loan in Ontario: payday loans lender cannot charge their customers more than $21 for each $100 of the total value of the loan.

When the economy is in its less successful age the people in need (and the sole aim of cheap payday loans is to help them) may suffer from being charged too much.

PIAC counsel, John Lawford drawn attention to the average numbers saying that average payday loan in Canada is $300 loan availed for a fortnight. Usual rate is $63 for such a loan. Provided the term is 10 days then an annual percentage rate is of over 766 per cent.

In his address to Minister of Small Business and Entrepreneurship and to the Ontario Cabinet John Lawford emphasized the extend of economical downturn that people are facing and expressed his concerns about them happening not to be able to overcome such exorbitant rates.

The idea is supported by the Liberal government as they think the capped payday loans will protect consumers.

Minister of Consumer Services, Ted McMeekin said that capping 24 hour payday loans was a part of a serious of measures aimed at protecting consumers. Together with other measures (certain prohibitions and obligation to be licensed) this move will better consumers' financial wellness.

Provinces that regulate payday loan lenders are Alberta, Nova Scotia, British Columbia and now Ontario. The authorities of Saskatchewan are considering similar steps.