Payday Loans Act, 2008: Proposed General Regulation
Ontario Regulation Number 98/09
Regulation - LGIC
Bill or Act:
Payday Loans Act, 2008
Summary of Decision:
Ontario Regulation 98/09, made under the Payday Loans Act, 2008 was filed on March 13, 2009.
Regulation 98/09 sets out the framework for a modern payday lending licensing system for payday lenders and loan brokers in Ontario, including transitional matters necessary for effective implementation of the Act and regulation.
The licensing provisions of the General Regulation will come into force on April 1, 2009. The provisions of the General Regulation dealing with consumer protection will come into force on July 1, 2009.
The section of the General Regulation that sets the upper limit on the total cost of borrowing for payday loan agreements in Ontario and certain related sections will come into force after Ontario receives designation from the federal government under the under the Criminal Code of Canada.
Provisions relating to the Ontario Payday Lending Education Fund will come into force when Part VII of the Payday Loans Act, 2008, which deals the Fund, comes into force.
Regulations are published in The Ontario Gazette and on the e-Laws website. This copy is being provided for convenience only.
February 3, 2009
Summary of Proposal:
The Payday Loans Act, 2008 (formerly Bill 48) received Royal Assent in the Ontario Legislature on June 18, 2008. The Act establishes a regime for regulating payday lenders and payday loan brokers. Key elements of the Act include the licensing of lenders and loan brokers, authority to set limits on the total cost of borrowing, borrower education, consumer protection features, and inspection and enforcement measures.
Under the Act, licensees will be required to contribute to an Education Fund. The Fund will be used to educate borrowers in regard to financial literacy and in respect of their rights under the Act. The Fund will be administered by a not-for-profit corporation reporting to the Minister of Small Business and Consumer Services.
The proposed Lieutenant Governor in Council General Regulation under the Payday Loans Act, 2008 would set out the framework for a modern payday lending licensing system for payday lenders and loan brokers in Ontario, including transitional matters necessary for effective implementation of the Act and regulation.
For a description of the proposed regulation, please see attached.
Ministry of Small Business & Consumer Services
Policy & Consumer Protection Services Division
5th Floor, 777 Bay Street
Fax: (416) 326-8885
April 1, 2009