Payday advances are an issue. The attention price charged is massive. In 2016, payday loan providers in Ontario may charge at the most $21 on every $100 lent, therefore then repeat that cycle for a year, you end up paying $546 on the $100 you borrowed if you borrow $100 for two weeks, pay it back with interest, and.
That is a yearly interest of 546%, and that is a big issue however it’s maybe not unlawful, because even though Criminal Code forbids loan interest of greater than 60%, you will find exceptions for short-term loan providers, to allow them to charge huge rates of interest.
Note: the utmost price of a cash advance ended up being updated in Ontario to $15 per $100. Read more