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Money matters
Payday loan regulations

Payday loans can be a very expensive way to borrow money

Though payday loans are easy to arrange, they are typically one of the most expensive ways to borrow money, and should only be considered as a last resort.

If you believe you need to borrow from a payday lender, you need to know that payday lenders are only allowed to charge up to 17 per cent of the amount you borrow. If you took a two-week loan for $100, it could cost you up to $17. It may not seem like much, that equals over 500 percent annual interest, far higher than the annual rate a bank or credit union would charge.

Money Matters | Payday Loan Regulations - Consumer Protection Office

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:

For more information or if you have questions you can visit the Manitoba Consumer Protection Office website at or see the contact us page for additional contact information.