New coverage of borrowing money

March 15, 2018

Do you know how much interest is charged on payday loans? Most people are shocked to learn that triple digit interest rates are common. How can that be? Doesn't Canadian law prohibit lenders from charging more than 60% annual interest on loans?

It does. But in 2007, an exemption was introduced for payday loans. These are short-term, small loans (up to $1,500) designed to bridge a borrower through a cash shortfall until their next payday, when generally the loan must be repaid in full. 

Every year, nearly two million Canadians use payday-lending services. And most have no idea how expensive payday loans are. Our new pages on payday loans will help you understand how they work: 

We've also posted new pages on other aspects of borrowing money:

Many thanks to Vancouver lawyer Ari Wormeli for reviewing this information for legal accuracy. 

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We are grateful to work on the unceded traditional territories of the xʷməθkʷəy̓əm (Musqueam), Sḵwx̱wú7mesh (Squamish) and səlilwətaɬ (Tsleil-Waututh) Nations, whose Peoples continue to live on and care for these lands.