Canada
Lending laws in Canada: what protects borrowers
Lending in Canada is regulated at both the federal and provincial level. Knowing the basic rules helps you spot a fair deal from a predatory one.
The criminal interest rate
Federal law sets a maximum allowable annual interest rate on most loans. Charging above it is a criminal offence. Payday loans are a specific exception, regulated separately by each province with their own fee caps.
Provincial payday rules
Each province sets its own maximum fee per $100 borrowed on a payday loan, along with cooling-off periods and limits on rollovers. Licensed payday lenders must display these terms clearly. If a lender won't show you the full cost up front, walk away.
Lender licensing
Most provinces require consumer lenders and payday lenders to hold a licence. Mortgage brokers and dealerships arranging auto financing are licensed too. Dealing with a licensed lender means you're covered by provincial consumer-protection rules if something goes wrong.