Changes in Ontario Payday Loan Act

Ontario is moving to strengthen protections for payday loan customers by reviewing the Payday Loans Act.

The review of this 2008 legislation comes in response to a number of changes in the rapidly evolving payday loan industry, including the emergence of online transactions, smartphone-enabled loan approvals and new forms of high-cost, short-term loans. The review of Ontario’s Payday Loans Act, 2008, will:

  • Assess the ability of the current legislation to protect consumers using new online and mobile apps to access short-term payday loans
  • Explore ways to track payday loans and ensure companies are compliant with existing regulations
  • Study stronger protections for consumers against multiple loans and roll-over loans
  • Review the maximum total cost of borrowing, which is currently capped at a $21 fee for every $100 borrowed
  • Examine the impact on customers of new short-term, high-cost loan products that have recently entered the marketplace

Protecting Ontario consumers is part of the government’s plan to ensure a fair marketplace and help people in their everyday lives.



  • More than 750 payday loan storefronts are located in the province.
  • Consumers who take out an average payday loan of $300 can pay up to $63 in fees.
  • Since 2008, inquiries to the Ontario government about payday loans have increased nearly tenfold, from 141 to 1,324.


  • Payday Loans Act, 2008.
  • The rights of payday loan customers.

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