Proposed Regulatory Amendments to the General Regulation (O. Reg. 98/09) of the Payday Loans Act, 2008
O. Reg. 98/09
Regulation - LGIC
Bill or Act:
Payday Loans Act, 2008
Summary of Decision:
The regulation was filed with the Registrar of Regulations December 17, 2013.
August 16, 2013
Summary of Proposal:
The Ministry of Consumer Services is proposing to amend the General Regulation by adding the following:
1. The heading immediately before section 1 of Ontario Regulation 98/09 is revoked and the following substituted:
DEFINITIONS AND APPLICATION OF ACT
2. The Regulation is amended by adding the following section:
Application of Act
1.1 (1) A loan described in subsection (2) is prescribed for the purposes of subsection 2 (2) of the Act.
(2) Subsection (1) applies to a loan under which a lender extends credit to a borrower so that the borrower may make one or more draws for up to an aggregate amount of principal and to which one of the following criteria applies but does not apply to a loan that is secured against real property:
1. The aggregate amount is $5,000 or less.
2. The borrower is not entitled to make a draw without first obtaining authorization, approval or permission of any kind from the lender or any other person, whether or not there is a charge for obtaining the authorization, approval or permission.
3. The borrower is required to make repayments of the principal amount of the loan or payments of any other amounts under the loan on a schedule that corresponds to the days on which the borrower is regularly due to receive income.
4. The amount that the borrower is required to pay in any 30-day period under the loan, except for the last such period, includes one or more repayments totalling at least 10 per cent of the principal amount of the loan.
3. This Regulation comes into force on the later of October 31, 2013 and the day it is filed.
Ministry of Consumer Services
Consumer Policy and Liaison Branch
Consumer and Business Policy Unit
777 Bay Street, 5th Floor
Toronto, ON M7A 2J3
Attention: Luisa Tmej, Team Lead
February 15, 2014