In Manitoba, there are a number of consumer protection laws governing the payday loan industry:
- The most you can be charged for a payday loan in Manitoba is $17 per $100 borrowed.
- A borrower has the right to cancel a payday loan within 48 hours.
- All fees and charges, the total cost of credit, the annual percentage rate and the date payment is due must be shown on the loan agreement.
- Payday loans are loans for not more than $1,500 and which have terms of no longer than 62 days without being renewed or extended.
Stop to consider your options
If you need to borrow money and are thinking of a payday loan, stop to consider your options. Can you borrow from family or friends? Will a bank or credit union lend you the money you need? Any of these options is likely to be much more affordable.
If you're still thinking of taking out a payday loan, make sure you're informed, make sure you know all of your rights, and read all of the fine print before signing for the loan. Here are some resources that can help you:
- Frequently Asked Questions – Payday Loan Information for Consumers
- Manitoba legislation links
- Canadian Consumer Handbook – payday lending
- Financial Consumer Agency of Canada – an expensive way to borrow