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Payday Loan Resources for Canadians

Welcome to Payday Loans Canada, a resource and information site covering the short term credit industry in Canada.

Understanding Your Rights as a Payday Borrower

Some provinces in Canada, including, but not limited to, British Columbia, Saskatchewan, Ontario have specific requirements and regulations in place for payday loan lenders.

The Government of Canada also oversees the services provided by the short term credit industry via the Financial Consumer Agency of Canada.  FCAC has excellent resources for Canadian consumers to better understand their rights and responsibilities when entering into a personal loan agreement of any kind.

Due to adverse behaviour by Payday Loans lenders in the past, there is currently a class action lawsuit proceeding in British Columbia.  Details on the class action can be found here.

Largest Payday Loans Providers in Canada

Industry Groups

A large portion of payday lenders in Canada belong to the Canadian Payday Loan Association or CPLA.  The CPLA lobbies provincial and federal government(s) in Canada, representing the rights and interests of Canadian payday lenders.  They also subscribe members to a self-enforced code of conduct for payday lending that includes disclosure requirements as well as assistance services for serial users of their service who may be in need of debt counselling or other services.

The Credit Counselling Society of Canada provides resources and assistance to borrowers who find themselves repeatedly using payday loan services without a clear end in sight.  If you find yourself in an endless string of short term loans to make ends meet, you should contact CCSC as soon as possible to find out what the options are for Canadian borrowers.  They can steer you to other service providers who are best positioned to assist you in your particular province.

Additional References & Resources

Canadian Parliamentary Library background data on the payday lending industry in Canada.

Report commissioned by the CPLA surveying the attitudes and demographics of Canadian consumers utilizing payday lending services.

Of note from the report:

Profile of Respondent Payday Loan Customers in British Columbia

  • The average age of respondent payday loan customers in British Columbia is 40 years.
  • The vast majority are employed full-time (77%).
  • About one-half (53%) of respondent payday loan customers have a post-secondary education from community college (32%), university (16%) or post-graduate/professional programs (5%).
  • Respondent payday loan customers would expect to pay, on average, $29.04 for interest and administration fees to borrow $100 for two weeks.
  • On average, more than one-half (56%) of respondent payday loan customers normally borrow less than $300 when they get a payday loan.
  • The average amount of money that respondent payday loan customers in British Columbia currently owe to financial institutions, excluding mortgages, is $22,765.
  • About one-half (45%) are married, while 17% are separated or divorced and 36% have never been married.
  • Respondent payday loan customers have household incomes generally on par with the general British Columbia population. 50% of British Columbians report household incomes of less than $50,000 a year, compared to just 56% of respondent payday loan customers.

Wikipedia compilation and summary covering global payday lending practices and legal affairs.

 

 

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