About the Industry

History

Following an international trend, the payday loan industry in Canada began in the mid-1990s in response to an unfulfilled consumer demand for small-sum, short-term credit. (Canadian banks, trusts, credit unions and other traditional financial institutions then, as now, do not fill this need.)  Salary advances, while once prevalent, became less available due to outsourcing of payroll processing and the use of direct deposit by employers.

Prior to the emergence of the payday loan industry, consumers had to turn to their friends and family to borrow small sums, or, if this personal network was unavailable or inappropriate, to alternative lenders with onerous lending conditions.

In early 2004, the Canadian Payday Loan Association (now called Canadian Consumer Finance Association) was formed to represent responsible financial service companies who offer the payday loan product, which was then unregulated. Members of the association recognized that it was important to create and adhere to industry standards of business practices to protect consumers and keep the industry viable, and to have a voice in the room with governments and regulators on how the industry develops.

The payday loan industry in Canada has grown rapidly to an estimated 1,400 retail outlets across the country, with  nearly two million Canadians a year make use of payday loans. Customers enjoy the high quality, confidential service that our member companies and their staff offer, the convenience of the store locations, and the extended hours of operation.

Legislation

In 2007, the Parliament of Canada passed an Act to Amend the Criminal Code (criminal interest) that took payday loans out of the Criminal Code, and turned over authority to regulate the industry to the provinces.

Alberta

Designation of Trades and Business Regulation, AR 178/99 (section 4.1 Payday loan Business) (PDF)

(Consolidated up to 140/2014)

Alberta Regulation 157/2009 Fair Trading Act (Payday Loans) Regulation, 2009 (PDF)

British Columbia

BC Reg 57/2009 – Payday Loans Regulation (Business Practices and Consumer Protection Act) – effective Nov. 1, 2009

Bill 27 – Business Practices And Consumer Protection (Payday Loans) Amendment Act, 2007 (PDF)

BC Reg 294/2004 – Business Practices and Consumer Protection Regulation (Part 2, section 7.3 – refers to “payday loans”) (PDF)

Manitoba

Manitoba Reg 7/2015 – Payday Loans Regulation, amendment (to 99/2007) – in force Mar. 1, 2015 (PDF)

The Consumer Protection Amendment Act (Improved Enforcement and Administration), SM 2012, c18 (PDF)

The Consumer Protection Amendment Act (High-Cost Credit Products), SM 2014, c12 – Awaiting Proclamation(PDF)

Payday Loans Regulation (Consumer Protection Act), MR 99/2007 , Effective: March 1st 2015 (PDF)

New Brunswick

An Act to Amend an Act Respecting Payday Loans, SNB 2014, c31 (not in force yet) (PDF)

An Act Respecting Payday Loans, SNB 2008, c3 (not proclaimed yet) (PDF)

Nova Scotia

Nova Scotia Review and Utility Board (NSUARB) – March 30, 2015

Payday Loans Decision (PDF)

Payday Loans Order (PDF)

Payday Loans Letter from Boar3 dated March 30, 2015 (PDF)

Nova Scotia Regulations June 2013 (PDF) (Reg. 248/2009) (PDF)

Consumer Protection Act May 2013 (R.S.N.S. 1989) (PDF)

Bill No. 114 -Consumer Protection Act (amended), An Act to Amend Chapter 92 of the Revised Statutes, 1989, the Consumer Protection Act – Nov.25, 2011

Bill 87 (as introduced) Consumer Protection Act (amended) (PDF)

Ontario

ON Reg 17/05 – General Regulation (Consumer Protection Act) (PDF)

Payday Loans Act 2008, SO 2008, c9 (PDF)

General, ON Reg 98/09 (Payday Loans Act) (PDF)

Administrative Penalties, ON Reg 209/09 (Payday Loans Act) (PDF)

Prince Edward Island

Consultation Paper – Office of the Attorney General. (PDF)

Payday Loans Act, SPEI 2009, c83 (not proclaimed). (PDF)

An Act to Amend An Act Respecting Payday Loans, SPEI 2014, c31. (PDF)

Payday Loans Act Regulations EC 67/13 (PEI Royal Gazette – Feb. 2, 2013) in force day the Act is in effect. (PDF)

Saskatchewan

The Payday Loans Act , Chapter P-4.3 of The Statutes of Saskatchewan, 2007 (effective January 1, 2012)

Payday Loan Regulations, Chapter P-4.3 Reg 1 (effective January 1, 2012) as amended by Saskatchewan Regulations 84/2012 and 105/2013.

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