Payday loan survey
(Greater Toronto area for 14-day loan)
Loan
   APR2 to borrow $100
Lender
Minimum
Maximum
Fee as stated
Roll over
Graduated
lending scheme1
For 7 days
For 14 days
%
A
$100
Up to 30% of
customer’s next pay
1% face per week + $12.99 item fee
(item fee waived if repaid before next payday)
No
No
727
390
B3
$115
$225
2.5% of face + $1.99 item fee4
+ $9.95 loan fee
No
Yes
670
335
C
30% net up to $300
Flat fee $15 per $100
Yes
No
780
390
D
$100
$500
Graduated flat fee
$20 for $100
$30 for $200
$40 for $300, etc.
No
Yes, will lend
more and decrease
charge/$100
1,040
520
E
Representative would not talk over the phone
F
$200
Depends on
familiarity with client
Flat fees $5 + $20 per $100
(fee + administration charge)
No
No
1,300
650
G
$100
$500

Graduated flat fee
$25 for $100
$45 for $200
$65 for $300, etc.

No
No
1,300
650
H
$100
$1,000
Flat fee $20 per $100
No
Yes
1,040
520
1 The outlet will initially loan a minimum amount, increasing as the customer becomes a regular client.
2 The annualized percentage rate (APR) is the nominal not effective rate. The nominal method is used for calculating consumer loans
in North America and Europe, excluding the U.K. The effective method, which is a more complex actuarial calculation, is used in
calculating the criminal rate of interest under section 347 of the Criminal Code. The effective rate would be significantly higher for short-term loans.
3 Cost of loan: (2.5% of $115) + $1.99 + $9.95 = $14.82; $14.82 ÷ 115 = x ÷ 100 –> x = 12.89; APR then calculated for 7 and 14 days.
4 An item fee is charged on the entire amount, not for each $100 borrowed. With an item fee, borrowing $100 has a much higher APR than borrowing a larger amount.
Source: Ramsay, Iain. Access to Credit in the Alternative Consumer Credit Market , 2000