Timeline of Payday Loans in Canada

The payday loan industry in Canada is in constant flux, and it can be difficult to keep track of the changes. My Canada Payday maintains this resource page for anyone interested in the history of payday loans in Canada.


Ontario passed Bill-184 reducing NSF Fees and Overdue Interest

Ontario reduced the fee for a defaulted loan to $25.00 per loan and maximum interest rate of 2.5% per month that can be changed on an outstanding loan


Nova Scotia Reduces Rate

Effective as of February 2019, the rate was decreased from 22% to 19%


New Brunswick implemented new regulations and a regulatory framework for licensing payday lenders

As of 1 January 2018, New Brunswick require all payday lenders to be licensed with the Financial and Consumer Services Commission (FCNB) to operate in New Brunswick; set the maximum fee on a loan at $15 per $100 borrowed; allow borrowers to cancel a loan within 48 hours at no charge; limit the number of loans that a lender can provide to a recipient at one time; and limit the loan amount to no more than 30 per cent of the recipient's net pay, among other requirements

Ontario mandates 3-part loans

On July 1, 2018, Ontario requires that when a borrower enters a third loan within a 63 day period, the payments must be spread over three pay periods, or two pay periods if they are paid on a monthly basis.

Ontario reduced interest rate to 15%

On January 1, 2018, the Ontario government's interest rate of 15% went into effect.

BC reduces maximum interest rate

On Sept 1, 2018, the BC government reduced the maximum interest rate to 15%.


Ontario reduces maximum interest rate

Ontario reduces the maximum interest rate to 18%, and schedules a decrease to 15% in 2018.

Alberta reregulates payday loans

Major changes including reducing the maximum interest rate to 17% from 23%, and requiring that all payday loans have a duration of 45-62 days.

BC reduces the maximum interest rate

British Columbia changes the maximum interest rate to 17%.


Dollars Direct exits the Canadian payday loan space


Prince Edward Island Enacted Payday Loan Regulations

In September 2015, Prince Edward Island imposed a limit of fees charged on loans to $25 per $100 borrowed.

Nova Scotia lowers interest rates

Nova Scotia reduces the maximum interest rate to 22% from 25%.

Ferratum enters the Canadian payday loan market

Ferratum, which is a multinational payday lender that has been in operation on four continents since 2005, enters the Canadian market.


The Cash Store goes bankrupt


Zaplo expands to Canada

Vivus, which offers online payday loans in Latvia, Lithuania, Finland, Sweden, Denmark, Poland, UK, Spain, Russia, and Georgia, expands their operations to Canada under the new name Zaplo.


Nova Scotia reviews payday loan regulations

After a review of the state of payday loans in Nova Scotia, an amendment came into effect on May 1, 2012 reducing the maximum interest rate to 25% and allowing online payday lenders to operate. Storefront lenders were required to provide funds in cash, in direct response to the Cash Store Financial's controversial policy on using debit cards.

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Wonga expands to Canada

Wonga, already famous in the UK for their payday loans, expands to Canada.


Ontario updates regulations

Ontario Regulations 98/09 becomes effective on September 1, 2011, enhancing the previous regulations and adding specific limits on the amount of interest charged and a number of other consumer protection rules.

Saskatchewan regulates payday loans

As of September 29, 2011 regulations governing payday loans in Saskatchewan went into effect. Interest rates were capped at 23% of the principal.

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My Canada Payday begins offering payday loans

My Canada Payday starts offering payday loans in addition to its existing financial products.

Newfoundland announces that payday loans will not be permitted

On June 16, 2010 the province of Newfoundland announced that it would not be regulating payday loans, thereby effectively making them illegal as payday loans would not be granted an exemption under CC section 347.1.

Official announcement

Redleaf expands to Canada

Redleaf Loans, which lends under the name Blizzard in the US, expands to Canada in 2010.

Alberta regulates payday loans

As of February 2, 2010 regulations governing payday loans in Alberta went into effect. Interest rates were capped at 23% of the principal.

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Dollars Direct founded

Nova Scotia regulates payday loans

As of June 11, 2009 regulations governing payday loans in Nova Scotia went into effect, however only storefront lenders were permitted to operate. Interest rates were capped at 31% of the principal.

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Ontario regulates payday loans

As of December 15, 2009 regulations governing payday loans in Ontario went into effect. Interest rates were capped at 21% of the principal.

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British Columbia regulates payday loans

As of November 1, 2009 regulations governing payday loans in British Columbia went into effect. Interest rates were capped at 23% of the principal, and overdue interest rates were capped at 30% APR up to a maximum of 7% of the principal.

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New Brunswick begins regulating payday loans

New Brunswick passed an act laying out the legal framework of a regulatory regime, but has not yet decided on the interest rates or licensed any lenders.


Manitoba regulates payday loans

On July 21, 2007, Manitoba updated the Consumer Protection Act to regulate payday loans.

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Canadian Criminal Code Section 347.1 introduced

Section 347.1 of the Criminal Code, allowing provinces to regulate payday loans, came into effect on May 3, 2007. While the specifics of interest rates and other charges are left to the provinces, it is generally agreed that there will be a limit imposed on interest and that rollovers will be prohibited. Quebec has provincial laws limiting interest to 35% APR, well below the federal usury rates, and is not expected to allow payday loans.

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Canada Payday Loan Association formed

Largely in response to the results of class action lawsuits, a number of the major payday lenders formed the CPLA to create a coordinated effort to lobby the government to regulate and thus legalize the payday loan industry.


Class action lawsuit against Money Mart

On December 23, 2003 Money Mart faces $515 million class action lawsuit in Ontario over violations of section 347 of the Criminal Code of Canada. This case eventually leads to the regulation of the payday loan industry.


Moneytree founded

Bob and Nadena Thompson founded Moneytree in 2002.


Cash Store Financial founded


310 Loan founded


Cash Money is founded


Instaloans is founded


Money Mart founded