Payday Loans Act, 2008

Part I Interpretation, application and Administration

1 (1) In this Act, “administrative penalty” means an administrative penalty imposed under section 59; (“pénalité administrative”) “advance” means the money transferred to or to the order of the borrower under a payday loan agreement and any other value, as prescribed, that the borrower receives under the agreement; (“avance”) “assessor” means a person designated in writing by the prescribed person as authorized to make an order under section 59 imposing an administrative penalty; (“évaluateur”) “borrower” means a corporation, partnership, sole proprietor, association or other entity or individual that receives a payday loan or indicates an interest in receiving a payday loan; (“emprunteur”) “Corporation” means the Ontario Payday Lending Education Fund Corporation designated under section 68; (“Société”) “cost of borrowing” means the total of all amounts that a borrower is required to pay…

2 (1) Subject to the regulations, this Act applies in respect of all payday loans if the borrower, lender or loan broker is located in Ontario when the loan is made or to be made. 2008, c. 9, s. 2 (1). Other loans (2) Except for section 32, this Act applies with necessary modifications to those loans, other than payday loans, that are prescribed and in that case the references to payday loans in this Act shall be read as references to those other loans. 2008, c. 9, s. 2 (2).

3 This Act does not apply to the persons, entities or payday loans or classes of persons, entities or payday loans that are prescribed. 2008, c. 9, s. 3.

4 In determining whether this Act applies to a person, entity, agreement or transaction, a court or other tribunal shall consider the real substance of the person, entity, agreement or transaction and in so doing may disregard the outward form. 2008, c. 9, s. 4.

5 (1) The Deputy Minister shall appoint a person as Registrar for the purposes of this Act. 2008, c. 9, s. 5 (1). Powers and duties (2) The Registrar may exercise the powers and shall perform the duties conferred on the Registrar under this Act. 2008, c. 9, s. 5 (2); 2009, c. 33, Sched. 10, s. 12. Section Amendments with date in force (d/m/y) 2009, c. 33, Sched. 10, s. 12 - 15/12/2009

PART II Licences

6 (1) No person or entity shall act as a lender unless the person or entity, (a) is licensed as a lender and, subject to section 17, has received notice in writing from the Registrar of the licence; or (b) is deemed to be licensed under section 18. 2008, c. 9, s. 6 (1). Same, loan broker (2) No person or entity shall act as a loan broker unless the person or entity, (a) is licensed as a loan broker and, subject to section 17, has received notice in writing from the Registrar of the licence; or (b) is deemed to be licensed under section 18. 2008, c. 9, s. 6 (2). Consequence (3) If a lender who is not licensed enters into a payday loan agreement with a borrower, the borrower is only required to repay the advance to the lender and is not liable to pay the cost of borrowing. 2008, c. 9, s. 6 (3).

7 (1) For the purposes of this Act, no lender shall deal with or through a loan broker who is not licensed. 2008, c. 9, s. 7 (1). Same (2) For the purposes of this Act, no loan broker shall deal with or through a lender who is not licensed. 2008, c. 9, s. 7 (2).

8 A change in the membership of a partnership is deemed to create a new partnership for the purpose of a licence. 2008, c. 9, s. 8.

9 (1) If an applicant for a licence or renewal of a licence does not meet the prescribed requirements, the Registrar shall refuse to issue or renew the licence, as the case may be. 2008, c. 9, s. 9 (1). Non-application (2) Section 13 does not apply to a refusal under subsection (1) to issue or renew a licence. 2008, c. 9, s. 9 (2). Notice of refusal (3) The Registrar shall give the applicant written notice of a refusal under subsection (1), setting out the reasons for the refusal. 2008, c. 9, s. 9 (3). Service of notice (4) Subsection 64 (3) does not apply to the notice. 2008, c. 9, s. 9 (4).

10 (1) If an applicant for a licence or renewal of a licence meets the prescribed requirements, the applicant is entitled to have the Registrar issue or renew the licence, as the case may be, unless, (a) the applicant is not a corporation and, (i) having regard to the applicant’s financial position or the financial position of an interested person or entity in respect of the applicant, the applicant cannot reasonably be expected to be financially responsible in the conduct of business, (ii) the past conduct of the applicant or of an interested person or entity in respect of the applicant affords reasonable grounds for belief that the applicant will not carry on business in accordance with law and with integrity and honesty, or (iii) the applicant or an employee or agent of the applicant makes a false statement or provides a false statement in the application; (b) the applicant is a corpo…

11 (1) A licence is subject to the conditions to which the applicant for the licence or the licensee consents, that the Registrar applies under subsection (2), that the Tribunal orders or that are prescribed. 2008, c. 9, s. 11 (1). Conditions of Registrar (2) Upon issuing or renewing a licence or at any other time, the Registrar may apply to the licence the conditions that the Registrar considers appropriate. 2008, c. 9, s. 11 (2). Licence not transferable (3) A licence is not transferable. 2008, c. 9, s. 11 (3).

12 Subject to section 13, the Registrar may refuse to issue a licence or renewal of a licence or may suspend or revoke a licence if, in the opinion of the Registrar, the applicant or the licensee, as the case may be, is not entitled to a licence under section 10. 2008, c. 9, s. 12.

13 (1) The Registrar shall notify the applicant or licensee, as the case may be, in writing if the Registrar proposes to, (a) refuse to issue a licence or renewal of licence; (b) suspend or revoke a licence; or (c) apply conditions to a licence to which the applicant or licensee has not consented. 2008, c. 9, s. 13 (1). Content of notice (2) The notice of proposal shall set out the reasons for the proposed action and shall state that the applicant or licensee is entitled to a hearing by the Tribunal if the applicant or licensee, within 15 days after service of the notice, serves a written request for a hearing on the Registrar and the Tribunal. 2008, c. 9, s. 13 (2). Service (3) The notice of proposal shall be served on the applicant or licensee in accordance with section 64. 2008, c. 9, s. 13 (3). If no request for hearing (4) If the applicant or licensee does not request a hearing in a…

14 (1) A request for a hearing under section 13 is sufficiently served if delivered personally or sent by registered mail to the Registrar and to the Tribunal. 2008, c. 9, s. 14 (1). Registered mail (2) If service is made by registered mail, it is deemed to be made on the third day after the day of mailing. 2008, c. 9, s. 14 (2). Other methods (3) Despite subsection (1), the Tribunal may order any other method of service it considers appropriate in the circumstances. 2008, c. 9, s. 14 (3).

15 (1) If the Registrar proposes to suspend or revoke a licence under section 13 and if the Registrar considers it in the public interest to do so, the Registrar may, by order, suspend the licence. 2008, c. 9, s. 15 (1). Immediate effect (2) The order takes effect immediately. 2008, c. 9, s. 15 (2). Expiry of order (3) If the licensee requests a hearing under section 13, (a) the order expires 15 days after the Tribunal receives the written request for a hearing; or (b) the Tribunal may extend the time of expiration until the hearing is concluded, if a hearing is commenced within the 15-day period mentioned in clause (a). 2008, c. 9, s. 15 (3). Extension of order (4) Despite subsection (3), if the Tribunal is satisfied that the conduct of the licensee has delayed the commencement of the hearing, it may extend the time of the expiration for the order, (a) until the hearing commences; and (…

16 The Registrar may cancel a licence upon the request in writing of the licensee and section 13 does not apply to the cancellation. 2008, c. 9, s. 16.

17 If, within the time prescribed or, if no time is prescribed, before the expiry of a licence, the licensee has applied for renewal of the licence and paid the required fee, the licence is deemed to continue, (a) until the renewal is issued; (b) until the Registrar gives the licensee written notice of the Registrar’s refusal under section 9 to issue the renewal; or (c) if the licensee is served notice that the Registrar proposes to refuse, under subsection 13 (1), to issue the renewal, (i) until the time for requesting a hearing has expired, if the licensee does not request a hearing, or (ii) until the Tribunal makes its order, if the licensee requests a hearing. 2008, c. 9, s. 17.

18 (1) A corporation, partnership, sole proprietor, association or other entity or individual acting as a lender or a loan broker on the day this section comes into force is deemed to be licensed as a lender or loan broker, as the case may be, until the expiry of the prescribed time. 2008, c. 9, s. 18 (1). Application for licence (2) If a corporation, partnership, sole proprietor, association or other entity or individual that is deemed to be licensed under subsection (1) applies for a licence and pays the required fee within the prescribed time mentioned in that subsection, the applicant continues to be deemed to be licensed until, (a) the Registrar issues the licence to the applicant; (b) the Registrar gives the applicant written notice of the Registrar’s refusal under section 9 to issue the licence; (c) the time for requesting a hearing expires, if the Registrar, under section 12, has…

19 If the refusal to issue a licence or renewal of a licence has become final or if the revocation of a licence has become final, the applicant or licensee, as the case may be, may reapply for a licence only if, (a) the prescribed time has passed since the refusal or revocation; and (b) new or other evidence is available or it is clear that material circumstances have changed. 2008, c. 9, s. 19.

Part III Regulation of Licensees

Disclosure to Registrar

20 (1) An applicant for a licence or renewal of a licence that is a corporation shall disclose to the Registrar the identity of, (a) each person or entity that beneficially owns or controls 10 per cent or more of the equity shares of the corporation issued and outstanding at the time of the application; and (b) persons or entities that are associated with each other and that together beneficially own or control 10 per cent or more of the equity shares of the corporation issued and outstanding at the time of the application. 2008, c. 9, s. 20 (1). Calculating number of shares (2) In calculating the total number of equity shares of the corporation beneficially owned or controlled for the purposes of subsection (1), the total number shall be calculated as the total number of all shares beneficially owned or controlled, but each share that carries the right to more than one vote shall be cal…

21 (1) In addition to the disclosure required under section 20, every licensee that is a corporation shall notify the Registrar in writing within 30 days after the issue of any equity shares of the corporation, if the issue results in, (a) any person or entity, or any persons or entities that are associated with each other, acquiring or accumulating beneficial ownership or control of 10 per cent or more of the total number of all issued and outstanding equity shares of the corporation; or (b) an increase in the percentage of issued and outstanding equity shares of the corporation beneficially owned or controlled by any person or entity, or any persons or entities that are associated with each other, if the person, entity or the associated persons or entities already beneficially owned or controlled 10 per cent or more of the total number of all issued and outstanding equity shares of the…

22 (1) Every licensee shall, within five days after the event, notify the Registrar in writing of, (a) any change in the licensee’s address for service; and (b) in the case of a corporation or partnership, any change in the officers or directors of the licensee. 2008, c. 9, s. 22 (1). Timing (2) The Registrar is deemed to have received the notice mentioned in subsection (1), (a) on the day on which the Registrar actually received it, if it was not sent by mail; or (b) on the day of mailing, if it was sent by mail. 2008, c. 9, s. 22 (2).

23 (1) The Registrar may at any time require a licensee to provide the Registrar with copies of any letters, forms, form letters, notices, pamphlets, brochures, payday loan agreements or other materials, including prescribed materials, that the licensee uses or proposes to use in the course of conducting business. 2008, c. 9, s. 23 (1). Compliance (2) If the Registrar requires a licensee to provide material to the Registrar under subsection (1), the licensee shall comply with the requirement as soon as practicable. 2008, c. 9, s. 23 (2). Registrar’s order (3) If the Registrar believes on reasonable grounds that any of the material mentioned in subsection (1) is false, misleading or deceptive or contravenes this Act or the regulations, the Registrar may, by order, amend, restrict or prohibit the use of the material. 2008, c. 9, s. 23 (3). Right to hearing (4) Section 13 applies with neces…

Protection of Borrowers

24 (1) Unless the regulations specify otherwise and subject to subsection (3), in acting as a licensee, a licensee shall not operate any office unless the licence authorizes the licensee to operate it. 2008, c. 9, s. 24 (1); 2017, c. 5, Sched. 2, s. 21 (1). Main office (2) If a licence authorizes the licensee to operate more than one office, the licence shall designate one office as the main office and the remainder as branch offices. 2008, c. 9, s. 24 (2). Location of offices (3) In acting as a licensee, a licensee shall not operate an office at a location if a by-law passed under section 154.1 of the Municipal Act, 2001 or section 92.1 of the City of Toronto Act, 2006 prohibits the operation of the office at the location. 2017, c. 5, Sched. 2, s. 21 (2). Section Amendments with date in force (d/m/y) 2017, c. 5, Sched. 2, s. 21 (1, 2) - 01/01/2018

25 (1) Subject to the regulations and subsections (2) and (3), a licensee shall not carry on business, including at any of its branch offices, under a name other than the name authorized by the licence. 2008, c. 9, s. 25 (1). Sole proprietor (2) A licensee carrying on business as a sole proprietor shall not use any description or device that would indicate that the licensee’s business is being carried on by more than one individual or by a corporation or other entity. 2008, c. 9, s. 25 (2). Exception (3) Despite subsection (2), a surviving or remaining partner may carry on business in the name of the original partnership if the surviving or remaining partner publishes on all letterhead, circulars and advertisements used in connection with the business the fact that the surviving or remaining partner is the sole proprietor. 2008, c. 9, s. 25 (3).

26 (1) No licensee shall make or shall facilitate the making of false, misleading or deceptive statements relating to a payday loan or a payday loan agreement in any advertisement, circular, pamphlet or material published by any means. 2008, c. 9, s. 26 (1). Requirements (2) No licensee shall make or shall facilitate the making of representations or cause representations to be made relating to a payday loan or a payday loan agreement, whether orally, in writing or in any other form, unless the representations comply with the prescribed requirements, if any. 2008, c. 9, s. 26 (2).

27 (1) No licensee shall falsify, assist in falsifying or induce or counsel another person to falsify or assist in falsifying any information or document relating to a payday loan or a payday loan agreement. 2008, c. 9, s. 27 (1). Furnishing false information (2) No licensee shall furnish, assist in furnishing or induce or counsel another person to furnish or assist in furnishing any false, misleading or deceptive information or documents relating to a payday loan or a payday loan agreement. 2008, c. 9, s. 27 (2).

28 (1) No loan broker shall receive or demand any payment from a borrower for assisting the borrower in obtaining a payday loan. 2008, c. 9, s. 28 (1). Same, under payday loan agreement (2) All payments that a borrower is required to make under a payday loan agreement shall be made to the lender, and not to any other person or entity, including a loan broker. 2008, c. 9, s. 28 (2). Duty of lender (3) No lender shall facilitate a contravention of subsection (1) or (2). 2008, c. 9, s. 28 (3). Consequence (4) If parties enter into a payday loan agreement that results in a contravention of subsection (2), the borrower is only required to repay the advance to the lender and is not liable to pay the cost of borrowing or any payment in contravention of that subsection. 2008, c. 9, s. 28 (4).

29 (1) A lender under a payday loan agreement shall ensure that the agreement is in writing and meets the prescribed requirements, if any, and shall deliver a copy of the agreement to the borrower no later than upon entering into the agreement. 2008, c. 9, s. 29 (1). Advance (2) A lender under a payday loan agreement shall ensure that the advance is delivered to the borrower no later than upon entering into the agreement. 2008, c. 9, s. 29 (2). Duties of loan broker (3) No loan broker shall facilitate a contravention of subsection (1) or (2). 2008, c. 9, s. 29 (3). Consequence (4) If parties enter into a payday loan agreement that results in a contravention of subsection (1) or (2), the borrower is only required to repay the advance to the lender and is not liable to pay the cost of borrowing. 2008, c. 9, s. 29 (4).

30 (1) A borrower under a payday loan agreement may, without any reason, cancel the agreement at any time up to the end of, (a) the second day after the time that the lender complies with subsections 29 (1) and (2), if the lender is open for business on that day; or (b) the next day that the lender is open for business following the second day described in clause (a), if the lender is not open for business on that second day. 2008, c. 9, s. 30 (1). Notice (2) To cancel a payday loan agreement under subsection (1), the borrower shall give notice, within the time required by that subsection, to the prescribed person or entity. 2008, c. 9, s. 30 (2).

31 (1) Subject to section 34, a lender under a payday loan agreement shall not receive or demand payment of any portion of the cost of borrowing from the borrower until the end of the term of the agreement. 2008, c. 9, s. 31 (1). Duty of loan broker (2) No loan broker shall facilitate a contravention of subsection (1). 2008, c. 9, s. 31 (2). Consequence (3) If parties enter into a payday loan agreement that results in a contravention of subsection (1), the borrower is only required to repay the advance to the lender and is not liable to pay the cost of borrowing. 2008, c. 9, s. 31 (3).

32 (1) This section applies to a payday loan agreement if, (a) the advance under the agreement is $1,500 or less or, if another amount is prescribed, that amount or less; and (b) the term of the agreement is 62 days or less or, if another number of days is prescribed, that number of days or less. 2008, c. 9, s. 32 (1). Duty of lender (2) The lender under a payday loan agreement shall ensure that the cost of borrowing under the agreement does not exceed the prescribed limits. 2008, c. 9, s. 32 (2). Duty of loan broker (3) No loan broker shall facilitate a contravention of subsection (2). 2008, c. 9, s. 32 (3). Consequence (4) If the cost of borrowing under a payday loan agreement exceeds the prescribed limits, the borrower is only required to repay the advance to the lender and is not liable to pay the cost of borrowing. 2008, c. 9, s. 32 (4).

32.1 (1) This section applies to a payday loan agreement if, (a) the advance under the agreement is $1,500 or less or, if another amount is prescribed, that amount or less; and (b) the term of the agreement is 62 days or less or, if another number of days is prescribed, that number of days or less. 2020, c. 18, Sched. 16, s. 1. Duty of lender (2) A lender shall not impose against a borrower under a payday loan agreement, and the borrower is not liable to pay, interest on the amount in default, except as provided for under subsection (3). 2020, c. 18, Sched. 16, s. 1. Maximum interest (3) A lender may charge a borrower a maximum interest rate of 2.5 per cent per month, not to be compounded, on the outstanding principal, unless otherwise prescribed. 2020, c. 18, Sched. 16, s. 1. Duty of loan broker (4) No loan broker shall facilitate a contravention of subsection (2). 2020, c. 18, Sched. 1…

33 (1) A lender shall not impose against a borrower under a payday loan agreement, and the borrower is not liable to pay, default charges other than, (a) reasonable charges in respect of legal costs that the lender incurs in collecting or attempting to collect a required payment by the borrower under the agreement; or (b) unless otherwise prescribed, a fee no greater than $25 for, (i) a dishonoured cheque, (ii) a dishonoured pre-authorized debit, or (iii) any other dishonoured instrument of payment. 2008, c. 9, s. 33 (1); 2020, c. 18, Sched. 16, s. 2 (1). Multiple fees prohibited (1.1) A lender shall not impose a fee under clause (1) (b) against a borrower more than once with respect to each payday loan agreement, regardless of the number of dishonoured instruments of payment accumulated with respect to that payday loan agreement. 2020, c. 18, Sched. 16, s. 2 (2). Duty of loan broker (2)…

34 A borrower is entitled to pay the full outstanding balance under a payday loan agreement or any part of that outstanding balance at any time without any prepayment charge or penalty. 2008, c. 9, s. 34; 2017, c. 5, Sched. 2, s. 22. Section Amendments with date in force (d/m/y) 2017, c. 5, Sched. 2, s. 22 - 13/04/2017

35 (1) The lender under a payday loan agreement shall not enter into a new payday loan agreement with the borrower before, (a) at least seven days have passed since the borrower has paid the full outstanding balance under the first agreement; or (b) the borrower has provided to the lender proof that the borrower has paid the full outstanding balance under the first agreement. 2008, c. 9, s. 35 (1). Note: On a day to be named by proclamation of the Lieutenant Governor, subsection 35 (1) of the Act is repealed and the following substituted: (See: 2017, c. 5, Sched. 2, s. 23 (1)) No concurrent or replacement payday loan agreements (1) The lender under a payday loan agreement shall not enter into a new payday loan agreement with the borrower before the prescribed number of days have passed since the borrower has paid the full outstanding balance under the first agreement. 2017, c. 5, Sched. …

36 (1) The lender under a payday loan agreement shall not extend the agreement unless the regulations permit extensions of payday loan agreements and the extension complies with the prescribed requirements. 2008, c. 9, s. 36 (1). Duty of loan broker (2) No loan broker shall facilitate a contravention of subsection (1). 2008, c. 9, s. 36 (2).

General

37 (1) A licensee who is required to disclose information under this Act shall ensure that the disclosure is clear, comprehensible and prominent. 2008, c. 9, s. 37 (1). Information to borrower (2) A licensee who is required to deliver information to a borrower under this Act shall ensure that the information, in addition to complying with subsection (1), is in a form that allows the borrower to retain it. 2008, c. 9, s. 37 (2).

PART IV Borrowers’ Rights and remedies

General

38 Nothing in this Act shall be interpreted to limit any right or remedy that a borrower may have in law. 2008, c. 9, s. 38.

39 (1) The substantive and procedural rights given under this Act apply despite any agreement or waiver to the contrary. 2008, c. 9, s. 39 (1). Term requiring arbitration (2) Without limiting the generality of subsection (1), any term or acknowledgment in a payday loan agreement that requires or has the effect of requiring that disputes arising out of the payday loan agreement be submitted to arbitration is invalid in so far as it prevents a borrower from exercising a right to commence an action in the Superior Court of Justice given under this Act. 2008, c. 9, s. 39 (2). Procedure to resolve dispute (3) Despite subsections (1) and (2), after a dispute over which a borrower may commence an action in the Superior Court of Justice arises, the borrower, the licensee and any other person involved in the dispute may agree to resolve the dispute using any procedure that is available in law. 20…

40 (1) A borrower may commence a proceeding on behalf of members of a class under the Class Proceedings Act, 1992 or may become a member of a class in such a proceeding in respect of a dispute arising out of a payday loan agreement despite any term or acknowledgment in the payday loan agreement that purports to prevent or has the effect of preventing the borrower from commencing or becoming a member of a class proceeding. 2008, c. 9, s. 40 (1). Procedure to resolve dispute (2) After a dispute that may result in a class proceeding arises, the borrower, the licensee and any other person involved in it may agree to resolve the dispute using any procedure that is available in law. 2008, c. 9, s. 40 (2). Settlements or decisions (3) A settlement or decision that results from the procedure agreed to under subsection (2) is as binding on the parties as the settlement or decision would be if it …

41 Any ambiguity that allows for more than one reasonable interpretation of a payday loan agreement that a licensee provides to a borrower or of any information that this Act or the regulations require to be disclosed to a borrower shall be interpreted to the benefit of the borrower. 2008, c. 9, s. 41.

Procedures

42 (1) A notice that a borrower is required to give to a person or entity under this Act may be expressed in any way, as long as it indicates the purpose of the notice and complies with the requirements, if any, that are prescribed. 2008, c. 9, s. 42 (1). Means of giving notice (2) Unless the regulations prescribe otherwise, the notice may be oral or in writing and may be given by any means. 2008, c. 9, s. 42 (2). Timing (3) If notice in writing is given other than by personal service, the notice is deemed to be given when sent. 2008, c. 9, s. 42 (3). Address (4) The borrower may send the notice to, (a) the address of the person or entity who is to receive the notice as the address is set out in the payday loan agreement, if the address is set out in the agreement; or (b) if the address is not set out in the payday loan agreement or if the borrower did not receive the copy of the agreeme…

43 (1) If a borrower cancels a payday loan agreement under subsection 30 (1), the cancellation takes effect when the borrower gives the notice required by subsection 30 (2). 2008, c. 9, s. 43 (1). Effect of cancellation (2) The cancellation operates to cancel the payday loan agreement as if it had never existed. 2008, c. 9, s. 43 (2). Obligations of parties (3) If a borrower cancels a payday loan agreement under subsection 30 (1), (a) the lender shall, in accordance with the prescribed requirements, if any, (i) refund to the borrower all payments, if any, made under the agreement or made as a condition of entering into the agreement, except repayments of any part of the advance, (ii) return to the borrower all post-dated cheques, pre-authorized debits and authorizations for future payments provided under the agreement, if those cheques, debits and authorizations are in tangible form, and…

44 (1) If a licensee has received a payment from a borrower to which the licensee is not entitled under this Act or that the borrower is not liable to make under this Act, the borrower may demand a refund of the payment by giving notice to the prescribed person or entity in accordance with section 42 within one year after making the payment. 2008, c. 9, s. 44 (1). Illegal default charges, interest (1.1) A payment referred to in subsection (1) includes interest or a default charge received by a licensee from a borrower to which the licensee is not entitled under this Act or that the borrower is not liable to pay under this Act. 2020, c. 18, Sched. 16, s. 3 (1). Refund (2) A person or entity that receives a notice demanding a refund under subsection (1) shall take the prescribed action. 2008, c. 9, s. 44 (2). Right of action (3) The borrower may commence an action in accordance with sectio…

45 (1) A borrower who has a right to commence an action under this Act may commence the action in the Superior Court of Justice. 2008, c. 9, s. 45 (1). Waiver of notice (2) If a borrower is required to give notice under this Act in order to obtain a remedy, the court may disregard the requirement to give the notice or any requirement relating to the notice if it is in the interest of justice to do so. 2008, c. 9, s. 45 (2). Judgment (3) If the borrower is successful in the action, the court, (a) shall order that the borrower recover the full payment to which the borrower is entitled under this Act, unless in the circumstances it would be inequitable to do so; and (b) may order exemplary or punitive damages or other relief that the court considers proper. 2008, c. 9, s. 45 (3).

Part V Complaints, Inspections and Enforcement

Complaints

46 (1) If the Registrar receives a complaint about a licensee, the Registrar may request information in relation to the complaint from any licensee. 2008, c. 9, s. 46 (1). Request for information (2) A request for information under subsection (1) shall indicate the nature of the complaint. 2008, c. 9, s. 46 (2). Duty to comply (3) A licensee who receives a written request for information shall provide the information as soon as practicable. 2008, c. 9, s. 46 (3). Procedures (4) In handling complaints, the Registrar may do any of the following, as appropriate: 1. Attempt to mediate or resolve the complaint. 2. Give the licensee a written warning that, if the licensee continues with the activity that led to the complaint, the Registrar may take action against the licensee. 3. Take an action under section 12, subject to section 13. 4. Take further action as is appropriate in accordance with…

Inspections and Investigations

47 (1) The Registrar or a person designated in writing by the Registrar may conduct an inspection and may, as part of the inspection, enter and inspect at any reasonable time the business premises of a licensee, other than any part of the premises used as a dwelling, for the purpose of, (a) ensuring compliance with this Act and the regulations; (b) dealing with a complaint under section 46; or (c) ensuring the licensee remains entitled to a licence. 2008, c. 9, s. 47 (1). Powers on inspection (2) While carrying out an inspection, an inspector, (a) is entitled to free access to all money, valuables, pre-authorized debits and authorizations for future payments, documents and records of the licensee that are relevant to the inspection; (b) may use any data storage, processing or retrieval device or system used in carrying on business in order to produce information that is relevant to the i…

47.1 (1) If the Registrar has reasonable grounds to believe that an activity for which a licence is required is occurring, the Registrar or a person designated in writing by the Registrar may conduct an inspection and may, as part of the inspection, enter and inspect at any reasonable time the business premises of a person or entity, other than any part of the premises used as a dwelling, for the purpose of determining whether the person or entity is carrying on the activity. 2017, c. 5, Sched. 2, s. 24. Application of section 47 (2) Subsections 47 (2) to (7) apply to the inspection described in subsection (1), reading references to a licensee as references to the person or entity whose business premises are subject to the inspection. 2017, c. 5, Sched. 2, s. 24. Section Amendments with date in force (d/m/y) 2017, c. 5, Sched. 2, s. 24 - 13/04/2017

48 (1) The Director may appoint persons to be investigators for the purposes of conducting investigations. 2008, c. 9, s. 48 (1). Certificate of appointment (2) The Director shall issue to every investigator a certificate of appointment bearing the Director’s signature or a facsimile of the signature. 2008, c. 9, s. 48 (2). Production of certificate of appointment (3) Every investigator who is conducting an investigation, including under section 49, shall, upon request, produce the certificate of appointment as an investigator. 2008, c. 9, s. 48 (3).

49 (1) Upon application made without notice by an investigator, a justice of the peace may issue a warrant, if satisfied on information under oath that there is reasonable ground for believing that, (a) a person or entity has contravened or is contravening this Act or the regulations or has committed an offence under the law of any jurisdiction that is relevant to the fitness, under this Act, of the person or entity for a licence; and (b) there is, (i) in any building, dwelling, receptacle or place anything relating to the contravention of this Act or the regulations or to the fitness, under this Act, of the person or entity for a licence, or (ii) information or evidence that relates to the contravention of this Act or the regulations or the fitness, under this Act, of the person or entity for a licence and that may be obtained through the use of an investigative technique or procedure o…

50 An investigator who is lawfully present in a place pursuant to a warrant or otherwise in the execution of the investigator’s duties may, without a warrant, seize anything in plain view that the investigator believes on reasonable grounds will afford evidence relating to a contravention of this Act or the regulations. 2008, c. 9, s. 50.

51 (1) An investigator may exercise any of the powers described in subsection 49 (2) without a warrant if the conditions for obtaining the warrant exist but by reason of exigent circumstances it would be impracticable to obtain the warrant. 2008, c. 9, s. 51 (1). Dwellings (2) Subsection (1) does not apply to a building or part of a building that is being used as a dwelling. 2008, c. 9, s. 51 (2). Use of force (3) The investigator may, in executing any authority given by this section, call upon police officers for assistance and use whatever force is reasonably necessary. 2008, c. 9, s. 51 (3). Applicability of s. 49 (4) Subsections 49 (5), (9), (10), (11) and (12) apply with necessary modifications to a search under this section. 2008, c. 9, s. 51 (4).

51.1 (1) An investigator who seizes any thing under the authority of section 49, 50 or 51 shall bring it before a justice of the peace or, if that is not reasonably possible, shall report the seizure to a justice of the peace. 2019, c. 14, Sched. 10, s. 14 (4). Procedure (2) Sections 159 and 160 of the Provincial Offences Act apply with necessary modifications in respect of a thing seized under the authority of section 49, 50 or 51 of this Act, reading the reference in subsection 160 (1) of that Act to a document that a person is about to examine or seize under a search warrant as a reference to a thing that an investigator is about to examine or seize under the authority of section 49, 50 or 51 of this Act. 2019, c. 14, Sched. 10, s. 14 (4). Section Amendments with date in force (d/m/y) 2019, c. 14, Sched. 10, s. 14 (4) - 10/12/2019

Orders and Offences

52 Repealed: 2011, c. 1, Sched. 2, s. 6. Section Amendments with date in force (d/m/y) 2011, c. 1, Sched. 2, s. 6 - 30/03/2011

53 (1) If the Registrar believes on reasonable grounds that a licensee is making a false, misleading or deceptive statement relating to a payday loan or a payday loan agreement in any material published by any means, including an advertisement, circular or pamphlet, the Registrar may, (a) order the cessation of the use of the material; (b) order the licensee to retract the statement or publish a correction of equal prominence to the original publication; or (c) order both a cessation described in clause (a) and a retraction or correction described in clause (b). 2008, c. 9, s. 53 (1). Procedures (2) Section 13 applies with necessary modifications to an order under this section in the same manner as to a proposal by the Registrar to refuse to issue a licence. 2008, c. 9, s. 53 (2). Effect (3) The order of the Registrar shall take effect immediately, but the Tribunal may grant a stay until…

54 (1) If it appears to the Director that a person or entity is not complying with this Act or the regulations or an order made under this Act, the Director may apply to the Superior Court of Justice for an order directing the person or entity to comply, and, upon the application, the court may make the order that the court thinks fit. 2008, c. 9, s. 54 (1). Same (2) Subsection (1) applies in addition to any other procedures that may be available to the Director, whether or not the Director has exercised his or her rights under such procedures. 2008, c. 9, s. 54 (2). Appeal (3) An appeal lies to the Divisional Court from an order made under subsection (1). 2008, c. 9, s. 54 (3).

55 (1) A person or entity is guilty of an offence who, (a) furnishes false information in any application under this Act or in any statement or return required under this Act; (b) fails to comply with any order under this Act; (c) contravenes or fails to comply with any section of this Act or the regulations; or (d) attempts to commit any offence mentioned in clause (a), (b) or (c). 2008, c. 9, s. 55 (1). Corporations (2) An officer or director of a corporation who fails to take reasonable care to prevent the corporation from committing an offence mentioned in subsection (1) is guilty of the offence. 2008, c. 9, s. 55 (2). Penalties (3) A person or entity that is convicted of an offence under this Act is liable to, (a) a fine of not more than $50,000 or to imprisonment for a term of not more than two years less a day, or both, if the person or entity is an individual; or (b) a fine of no…

56 If a person or entity is convicted of an offence under this Act, the court making the conviction may, in addition to any other penalty, order the person or entity convicted to pay compensation or make restitution. 2008, c. 9, s. 56.

57 (1) If a charge mentioned in subsection (2) is in default for at least 60 days, the Director may disclose to a consumer reporting agency the name of the defaulter, the amount of the charge and the date the charge went into default. 2008, c. 9, s. 57 (1). Same (2) Subsection (1) applies to the following charges: 1. A fine payable as a result of a conviction for an offence under this Act. 2. An administrative penalty payable as a result of an order under section 59 or, if the order is varied on appeal, the varied order. 2008, c. 9, s. 57 (2). If payment made (3) Within 10 days after the Director has notice that the charge has been paid in full, the Director shall inform the consumer reporting agency of the payment. 2008, c. 9, s. 57 (3).

58 (1) If a charge mentioned in subsection 57 (2) is in default for at least 60 days, the Director may by order create a lien against the property of the person who is liable to pay the charge. 2008, c. 9, s. 58 (1). Liens on personal property (2) If the lien created by the Director under subsection (1) relates to personal property, (a) the Personal Property Security Act, except Part V, applies with necessary modifications to the lien, despite clause 4 (1) (a) of that Act; (b) the lien is deemed to be a security interest that has attached for the purposes of the Personal Property Security Act; and (c) the Director may perfect the security interest mentioned in clause (b) for the purposes of the Personal Property Security Act by the registration of a financing statement under that Act. 2008, c. 9, s. 58 (2). Charges on real property (3) If the lien created by the Director under subsection…

Administrative Penalties

59 (1) An assessor who is satisfied that a licensee has contravened or is contravening a prescribed provision of this Act or the regulations may, by order, impose an administrative penalty against the licensee in accordance with this section and the regulations made by the Minister. 2008, c. 9, s. 59 (1). Purpose (2) The purpose of an administrative penalty is to promote compliance with the requirements established by this Act and the regulations. 2008, c. 9, s. 59 (2). Amount (3) The amount of an administrative penalty shall reflect the purpose of the penalty and shall be the amount prescribed by the Minister, which prescribed amount shall not exceed $10,000. 2008, c. 9, s. 59 (3). Form of order (4) An order made under subsection (1) imposing an administrative penalty against a licensee shall be in the form that the prescribed person who is authorized to designate assessors determines. …

60 (1) The licensee against whom an order made under subsection 59 (1) imposes an administrative penalty may appeal the order to the person prescribed by the Minister by delivering a written notice of appeal to the person within 15 days after receiving the order. 2008, c. 9, s. 60 (1). Extension of time for appeal (2) The prescribed person mentioned in subsection (1) may extend the time period for appealing and may determine the circumstances in which extensions are given. 2008, c. 9, s. 60 (2). Form of notice (3) The notice of appeal shall be in the form that the prescribed person mentioned in subsection (1) determines. 2008, c. 9, s. 60 (3). Filing of notice (4) The licensee shall file the notice of appeal in the manner that the prescribed person mentioned in subsection (1) determines. 2008, c. 9, s. 60 (4). Stay (5) An appeal commenced in accordance with subsection (1) operates as a s…

61 If a licensee pays an administrative penalty in accordance with the terms of the order imposing it against the licensee or, if the order is varied on appeal, in accordance with the terms of the varied order, the licensee cannot be charged with an offence under this Act in respect of the same contravention on which the order is based and no other prescribed measure shall be taken against the licensee in respect of the same contravention on which the order is based. 2008, c. 9, s. 61.

62 (1) If a licensee fails to pay an administrative penalty in accordance with the terms of the order imposing it against the licensee or, if the order is varied on appeal, in accordance with the terms of the varied order, the order may be filed with the Superior Court of Justice and enforced as if it were an order of the court. 2008, c. 9, s. 62 (1). Date of order (2) For the purposes of section 129 of the Courts of Justice Act, the date on which the order is filed with the court shall be deemed to be the date of the order. 2008, c. 9, s. 62 (2). Debt due to Crown (3) An administrative penalty that is not paid in accordance with the terms of the order imposing it or, if the order is varied on appeal, in accordance with the terms of the varied order is a debt due to the Crown and is enforceable as such. 2008, c. 9, s. 62 (3).

PART VI General

63 (1) A person who obtains information in the course of exercising a power or carrying out a duty related to the administration of this Act or the regulations shall preserve secrecy with respect to the information and shall not communicate the information to any person except, (a) as may be required in connection with a proceeding under this Act or in connection with the administration of this Act or the regulations; (b) to a ministry, department or agency of a government engaged in the administration of legislation similar to this Act or legislation that protects consumers or to any other entity to which the administration of legislation similar to this Act or legislation that protects consumers has been assigned; (c) as authorized under the Regulatory Modernization Act, 2007; (d) to a prescribed entity or organization, if the purpose of the communication is consumer protection; (e) to…

64 (1) Any notice, order or request of the Director or the Registrar is sufficiently given or served if it is delivered personally or sent by registered mail or by another manner if the sender can prove receipt of the notice, order or request. 2008, c. 9, s. 64 (1). Deemed service (2) If service is made by registered mail, the service is deemed to be made on the third day after the day of mailing unless the person on whom service is being made establishes that the person did not, acting in good faith, through absence, accident, illness or other cause beyond the person’s control, receive the notice, order or request until a later date. 2008, c. 9, s. 64 (2). Exception (3) Despite subsections (1) and (2), the Tribunal may order any other method of service it considers appropriate in the circumstances. 2008, c. 9, s. 64 (3).

65 (1) For all purposes in any proceeding, a statement purporting to be certified by the Director is, without proof of the office or signature of the Director, admissible in evidence as proof in the absence of evidence to the contrary, of the facts stated in it in relation to, (a) the licence or non-licensing of any person or entity; (b) the filing or non-filing of any document or material required or permitted to be filed with the Registrar; (c) the time when the facts upon which the proceedings are based first came to the knowledge of the Director; or (d) any other matter pertaining to the licensing or non-licensing of persons or entities or to the filing or non-filing of information. 2008, c. 9, s. 65 (1). Proof of document (2) Any document made under this Act that purports to be signed by the Director or a certified copy of the document is admissible in evidence in any proceeding as …

Part VII Ontario payday lending education fund

Fund Established

66 (1) A fund is established to be known as the Ontario Payday Lending Education Fund in English and Fonds ontarien de sensibilisation au crédit sur salaire in French. 2008, c. 9, s. 66 (1). Composition (2) The Fund is composed of, (a) the payments that licensees are required to make to the Fund; (b) all money received from any other source; and (c) all income on the payments and money mentioned in clauses (a) and (b), including any rights or benefits occurring from the investment of the payments and money or any property obtained from the investment of the payments and money. 2008, c. 9, s. 66 (2). Minister’s orders (3) The Minister may, by order, (a) establish the amount of payments that licensees are required to make to the Fund or the method for determining the amount of those payments; (b) require the making of the payments described in clause (a); and (c) make rules governing the m…

67 The purposes of the Fund are, (a) to promote the education of persons respecting the rights and obligations of persons and entities under this Act and respecting financial planning, where the education is done through the use of publications, training, advertising, and similar initiatives, including by making grants and transfer payments; and (b) to achieve other objectives that are consistent with the purposes of this Act and that are prescribed by the Minister. 2008, c. 9, s. 67.