How payday loans work in London
London is southwestern Ontario's largest city, home to Western University and Fanshawe College, a major healthcare sector and a strong manufacturing base.
Every payday loan in London follows Ontario's Payday Loans Act, 2008. You can borrow $100 to $1,500, but no more than 50% of your net pay for the pay period. The cost can't exceed $14 per $100, the loan is usually due in one payment on your next payday, and you have two business days to cancel with no penalty.
What a payday loan costs in London
| You borrow | $300 |
|---|---|
| Maximum cost ($14 per $100) | $42 |
| Total to repay | $342 |
| Due | One payment on your next payday |
| Take-home pay needed (50% rule) | At least $600 per pay period |
| APR on a 14-day loan | 365% |
If you take out three payday loans from the same lender within 63 days, Ontario requires the lender to offer an extended payment plan, letting you repay in instalments over several pay periods with no extra fees.
Borrowing in London: what to know
Students and part-time workers should be careful with the 50% rule. On a smaller paycheque, the maximum loan is smaller too. Student loans usually don't count as regular income, and your school's financial aid office may have emergency funding that costs nothing.
Getting your money in London
You can apply from anywhere in London, including Byron, Masonville, Westmount and St. Thomas. Once you e-sign your agreement, your lender sends the loan by Interac e-Transfer. Weekday morning applications are often funded within a few hours; evening and weekend applications usually fund the next business day.
Every lender we work with is licensed in Ontario. Lenders must show their licence number and the total cost of the loan before you sign. If a website offering loans in London can't show an Ontario licence or asks for money upfront, don't apply.
Free financial help in London
London residents can call 211 for local supports. Students should contact their school's financial aid office first, and free non-profit credit counselling is available in person or by phone.
If you believe a payday lender broke Ontario's rules, you can file a complaint with Consumer Protection Ontario. For free legal information, your local community legal clinic can help.