ontario regulation 475/24

made under the

Payday Loans Act, 2008

Made: November 28, 2024
Filed: November 29, 2024
Published on e-Laws: December 2, 2024
Published in The Ontario Gazette: December 14, 2024

Amending O. Reg. 98/09

(GENERAL)

1. (1) Paragraph 1 of subsection 14 (3) of Ontario Regulation 98/09 is amended by adding “and” at the end of subparagraph i and by revoking subparagraphs ii to iv and substituting the following:

ii. the amount “$14.00” in 144 point font, immediately below the text described in subparagraph i.

(2) Subparagraph 2 ii of subsection 14 (3) of the Regulation is amended by striking out “immediately below subparagraph i” and substituting “immediately below the text described in subparagraph i”.

2. Paragraph 0.1 of subsection 15 (2) of the Regulation is revoked and the following substituted:

0.1 The maximum allowable cost of borrowing under payday loan agreements is $14 for each $100 advanced.

3. Item “F” in paragraph 1 of subsection 18 (1) of the Regulation is revoked and the following substituted:

F = $14 per $100 borrowed.

4. Section 23 of the Regulation is revoked and the following substituted:

Maximum allowable cost of borrowing

23. The prescribed limit on the cost of borrowing under a payday loan agreement for the purposes of subsection 32 (2) of the Act is $14 per $100 advanced under the agreement.

5. The Regulation is amended by adding the following section:

Dishonoured instrument of payment

25.2 The maximum fee for the purposes of clause 33 (1) (b) of the Act is $20.

6. (1) Paragraph 2 of subsection 37.1 (2) of the Regulation is revoked and the following substituted:

2. The amount set out in subparagraph 1 ii of subsection 14 (3) shall be read as “an annual percentage rate of interest of 35 per cent”.

(2) Subparagraph 3 i of subsection 37.1 (2) of the Regulation is revoked and the following substituted:

i. the maximum allowable cost of borrowing required to be disclosed by paragraph 0.1 shall be the annual percentage rate of interest of 35 per cent, and

(3) Item “A” in paragraph 4 of subsection 37.1 (2) of the Regulation is amended by striking out “the effective annual rate of interest of 60 per cent” and substituting “the annual percentage rate of interest of 35 per cent”.

Commencement

7. This Regulation comes into force on the later of January 1, 2025 and the day this Regulation is filed.