The Province of Ontario will complete its regulation of the payday loan and cash advance industry as of December 15, 2009. This includes includes a maximum rate of $21 per $100 loaned. Included in the new regulations are strong consumer protections in conjunction with good, solid, and fair legislation thus, assuring the future of the payday loan industry in Ontario.
Shortly, the Province of Saskatchewan will announce the maximum rate of borrowing for payday loan transactions at $23 per $100 loaned. Saskatchewan becomes the fifth province to have set a maximum cap for payday loan transactions.
Ontario joined Nova Scotia and British Columbia in being exempted from Section 347 of the Canadian Federal Code. This move allows the Province of Ontario to implement a maximum rate and enabling legislation for payday loan lending.
The Province of Alberta is also in the final steps of completing its exemption from Section 347.
The provinces of Manitoba, New Brunswick and Prince Edward Island are still in the process of negotiating payday loan legislation, maximum caps, and licensing.