Notice of Provincial Public Consultations: Consumer Protection Act and Payday Loans Act

The Province of Ontario governs pay day lenders and alternative financial services such as cheque-cashing, instalment loans and rent-to-own services.

In April, Ontario Bill 59 (Putting Consumers First Act) received Royal Assent, providing municipalities with additional tools to license and regulate payday lenders. It is expected to come into force in early 2018, following additional consultations on the newly proposed regulations.

Highlights include:
– decreasing the maximum cost of borrowing from $21 to $18 per $100 borrowed; and
– amending the City of Toronto Act to permit the City to prohibit the operation of an office or limit the number of offices that may operate in a defined area.

Last week, the Province released its consultation paper entitled “Strengthening Protection for Consumers of Alternative Financial Services – Phase One” and is now looking for input in developing regulations for payday lenders and alternative financial services (i.e. cheque-cashing, instalment loans, and rent-to-own services). The Province is accepting input until August 21, 2017.

Key issues being consulted on include:
– limiting amount of payday loans to 40% of borrower’s net pay
– requiring payday lenders to disclose annual percentage rate of loan
– requiring six-day waiting period between payday loans
– exempting credit unions from the requirements for the Payday Loans Act; and
– changing advertising requirements to support consumer decision-making

About the consultations and how to provide feedback
We want to ensure that the interest of Torontonians are taken into account as the Province seeks input on proposed regulatory changes to payday lending and alternative financial services.

This notice is being sent to encourage you and your constituents to participate in the provincial consultations.

The following has been taken from the Province’s website:

Input can be provided in the following ways until August 21, 2017:

1. Regulatory registry email link titled “Comment on this proposal via email” at the bottom of the regulatory registry page for this consultation.
2. Email your comments to with “Consumer financial protection regulations – phase 1” as a subject line.
3. Mail completed consultations to:
ATTN: Consumer Financial Protection regulations
Consumer Policy and Liaison Branch
Ministry of Government and Consumer Services
56 Wellesley Street West – 6th Floor, Toronto, ON, M7A 1C1

If you have questions about this consultation, email