4. Complain if you have a problem with the payday lender

I can't repay my payday loan. What should I do?
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4. Complain if you have a problem with the payday lender

Payday lenders have to follow certain rules. For example they:

  • can’t charge interest and fees that are more than $15 for every $100 you borrow
  • can't lend you more than 50% of your net monthly pay per loan
  • can't ask you for collateral 
  • can't ask you for a guarantor  
  • can’t offer you other services when you apply for a loan, like buying your gold or jewellery, or cashing cheques
  • must put your loan agreement in writing
  • must say in your loan agreement that you have 2 business days to cancel the contract if you change your mind
  • must give you a copy of the loan agreement as soon as you sign it
  • must give you the money right away if you signed the agreement at their store
  • must make the money available to you within 1 hour if you made the agreement online or over the phone
  • can’t give you a new loan until the first one is paid off
  • can’t contact you more than 3 times a week or on statutory holidays
  • can’t take money from your paycheque to pay the loan

If you think your payday lender hasn’t followed one or more of these rules, you can file a complaint with the Ontario Ministry of Government and Consumer Services.

Lenders who haven’t followed the rules may get a warning, receive a fine, or even lose their licence.

You can also ask the Ministry to investigate and to prosecute the lender under the Payday Loans Act. This has all the rules payday lenders must follow. If the lender is convicted, they may be ordered to repay some of your money to you. They may also have to pay a fine, or even be sent to jail.

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Ministry of Government and Consumer Services
Reviewed: July 18, 2018

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