Loophole in Bill Allows Payday Lenders to Charge 365% Interest Rates, Senate Committee Hears

A loan store is seen in Oshawa, Ontario on Dec. 18, 2019. The Canadian Press/Aaron Vincent Elkaim

The Department of Finance has confirmed the existence of a loophole in a bill aimed at combating usury, allowing payday lenders to charge interest rates of up to 365 percent annually.

“The annual percentage rate on $14 per $100 is still a very high rate, 300 percent or more,” Sen. Jim Quinn said during a Standing Senate Committee on Legal and Constitutional Affairs meeting on May 18. “That’s a very high rate. I’m wondering why.”