License
- A payday lender must prominently display a copy of the licence in each location named to which the licence pertains.
- If the payday lender engages in the payday loan business by means of the Internet, the payday lender must display a copy of the licence, prominently at or near the top of the introductory page of the website for Ontario borrowers.
Cost of a Payday Loan
- The maximum amount of a payday loan is $14 for every $100 borrowed.
- If you borrowed $200, it would cost $28, and you would pay back $228.
- If the loan is not paid on time, overdue interest of 30% per year can be charged.
- A fee of $20 can be charged for an NSF(bounced payment).
Borrowing Rules
A payday loan cannot be more than $1,500.
A payday lender must not issue a payday loan in excess of 50% of the borrower’s net pay.
A payday loan cannot be more than 62 days.
Split Payments
A payday lender who enters into a third payday loan agreement in 62 days must be offered split payments.
- If you are paid weekly, biweekly, or twice monthly, you can pay over 3 equal payments.
- If you are paid monthly, you can pay over 2 equal payments.
Prohibited Practices
A Payday lender must not:
- Require or request that the borrower insure a payday loan.
- Give another payday loan if you already have an outstanding loan with us.
- Ask for collateral as security for a payday loan.
- Require or accept an assignment of wages.
- Require or use a borrower’s personal information for any purpose other than providing a payday loan.
Rollovers
There are two types of rollovers, and neither one is allowed.
- Imagine you have a payday loan due. Instead of paying it back, you ask the lender to give you more time. But for that extra time, you are charged more fees on top of the overdue interest.
- Imagine you have a payday loan due. You ask the payday lender to give you a second loan. The lender agrees, but takes that money and uses it to pay off the first loan.
Discounting a Payday Loan
“Discounting a payday loan” refers to a practice where the lender deducts the fees or interest charges before giving you the principal loan amount.
Here’s how it works:
- You need: Let’s say you need to borrow $300.
- The lender’s fee: The lender charges a fee, for example, $42 for the two-week loan.
- The “discount”: Instead of giving you $300 and then expecting you to repay $342, they “discount” the loan by deducting the $45 fee upfront.
- What you receive: You would only receive $258 ($300 – $42).
- What you repay: You are still obligated to repay the full $300 on your next payday.
Why is this called “discounting”? It’s called discounting because the cost of borrowing (the fee) is taken “off the top” or “discounted” from the principal amount before you receive it.
Getting a Payday Loan in Ontario: What You Need to Know
When unexpected expenses arise, having a reliable option to get cash quickly can make all the difference. At Loan Express, we specialize in providing payday loans to Ontario residents, ensuring a fast and easy borrowing experience.
Why Loan Express Stands Out in Ontario
- Tailored for Ontario Residents: We understand the unique requirements and regulations that payday lenders must follow in the province.
- Online Options: We’re available 24/7 365 online!
- Transparent and Simple: Our website prominently displays our Ontario lending license, ensuring full compliance and giving you peace of mind.
- Responsible Lending: We help you understand your borrowing capacity, so you never take on more than you can handle.
Smart Borrowing Tips
- Calculate Before You Commit: Use our online calculator to see exactly how much you’ll repay.
- Stay on Top of Payments: Mark your calendar to keep track of split payments if you’ve taken a third loan within 62 days.
- Borrow Only What You Need: Payday loans are a short-term solution—use them wisely.
- Keep Your Information Secure: Rest assured that Loan Express only uses your personal data for the loan process.
Ready to Apply?
Get cash when you need it—fast and hassle-free. Apply online today with Loan Express and experience the difference of working with a trusted Ontario lender.