Your Rights as a Borrower
Understanding consumer protections and the 35% APR cap in Canada
Key Consumer Protections
Clear Disclosure
Lenders must clearly disclose all loan terms, including APR, fees, and total cost of borrowing before you sign.
35% APR Maximum
As of 2025, the Criminal Rate of Interest caps all loans at 35% APR. Rates above this are illegal in Canada.
Fair Collection Practices
Debt collectors cannot harass you, use threatening language, or contact you at unreasonable hours.
Cooling-Off Period
Many provinces provide a cooling-off period during which you can cancel a loan without penalty.
Understanding the 35% APR Cap
Effective 2025, Canadian federal law has been updated to protect borrowers
The Criminal Rate of Interest under Section 347 of the Criminal Code of Canada limits the maximum annual interest rate that can be charged on any loan. As of 2025, this cap has been set at 35% APR (Annual Percentage Rate).
This means that when you add up all costs associated with borrowing—including interest, fees, and any other charges—the effective annual rate cannot exceed 35%.
What This Means for You
- All legitimate lenders must charge 35% APR or less
- Any lender charging more is operating illegally
- You can report predatory lenders to regulators
- 365 Loans only works with compliant lenders
At 365 Loans Canada, we exclusively partner with lenders who comply with all federal and provincial regulations, including the 35% APR cap. You can compare offers with confidence knowing all rates are within legal limits.
Provincial Consumer Protection
Canadian lending is regulated at the provincial level
| Province | Regulator | Payday Loan Cap |
|---|---|---|
| British Columbia | Consumer Protection BC | Payday: $15 per $100 borrowed |
| Ontario | Ministry of Public and Business Service Delivery | Payday: $15 per $100 borrowed |
| Alberta | Service Alberta & Red Tape Reduction | Payday: $15 per $100 borrowed |
| Quebec | Office de la protection du consommateur (OPC) | Payday loans prohibited |
| Manitoba | Consumer Protection Office | Payday: $17 per $100 borrowed |
| Saskatchewan | Financial and Consumer Affairs Authority (FCAA) | Payday: $17 per $100 borrowed |
All personal loans in Canada are subject to the Criminal Rate of Interest cap (currently 35% APR). 365 Loans is a comparison platform, not a lender. Always verify a lender's licensing status with your provincial regulator before borrowing. Sources: FCAC, provincial regulator websites.
File a Complaint
If you believe a lender has violated your rights or charged illegal rates, contact the appropriate regulatory agency below.
Financial Consumer Agency of Canada (FCAC)
Federal regulator overseeing financial institutions and consumer protection
Ontario - Consumer Protection Ontario
Regulates payday lenders and consumer protection in Ontario
British Columbia - Consumer Protection BC
Enforces consumer protection laws in British Columbia
Alberta - Service Alberta
Handles consumer complaints and licensing in Alberta
Quebec - Office de la protection du consommateur
Consumer protection agency for Quebec residents
Compare Compliant Loan Offers
All lenders in our network comply with Canadian regulations, including the 35% APR cap. Check your rate with no impact to your credit score.
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