Why the Ontario Government Didn’t fall tough adequate in the pay day loan Industry

Why the Ontario Government Didn’t fall tough adequate in the pay day loan Industry

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