In the event that no such provincial legislation exists (as is the case in Newfoundland and Labrador) payday loans are limited by usury laws, with any effective (compound) rate of interest charged above 60% per annum considered criminal.
On August 14, 2006, the Supreme Court of British Columbia issued its decision in a class action lawsuit against A OK Payday Loans.
[3] In 2006, Parliament amended the Criminal Code to allow the provinces to regulate the payday loan industry.
Since November 1, 2009, the Payday Loans Regulation (under the Business Practices and Consumer Protection Act)[8] have been in force in British Columbia.
[9] In September 2016, the BC government proposed a new maximum allowable charge of $15 for every $100 borrowed- this change became effective January 1, 2017.
[13] Newfoundland and Labrador has enacted no legislation on the matter, thereby leaving any restrictions up to the federal government's cap of 60%.
However, it appears that a payday loan industry exists in Newfoundland and Labrador, with the provincial prosecutors determining "the prosecution of those offences was not in the public interest.
[21] On June 27, 2016, the Ministry of Government and Consumer Services sent out an email stating that "after receiving second reading, it has now been referred to the Standing Committee on Social Policy."
On April 20, 2016, the Ontario government issued a press release [22] seeking input on lower rates for payday loans.
[28] Prince Edward Island has imposed a limit of fees charged on loans to $25 per $100 borrowed for a period of two weeks.
[30] In June 2010, the government of Saskatchewan announced regulations on payday loans similar to those in British Columbia.