...But there's no question that some responsible lenders - including those serving smaller communities - will have to significantly tighten their belts to operate under the new cap.
Stan Keyes, President of the CPLA

The Ontario government has set the maximum allowable fee to be charged for a payday loan at $21 per $100 borrowed - including all charges the consumer would pay.

Canadian payday loan provider Money Mart said its current rates are already below the government's cap.

"The government has taken a balanced approach that takes into account consumer protection and the viability of the industry to continue to provide this financial product to the consumers who need it," said the Stan Keyes, President of the CPLA. "But there's no question that some responsible lenders - including those serving smaller communities - will have to significantly tighten their belts to operate under the new cap."

Many of the elements of Ontario's new regulations are already part of the CPLA's "Code of Best Business Practices" - introduced four years ago and monitored by an independent Ethics and Integrity Commissioner to ensure compliance among CPLA members.

The CPLA has been actively working for five years with governments to pass legislation and implement maximum fees to ensure a balance between a viable industry and consumer protection.