The penalty that may be charged, required or accepted in relation to any default by a borrower under a payday loan is a penalty of 2.5% of the amount in default, calculated monthly and not to be compounded for the purpose of subsection 153(1) of the Act. This penalty might be charged, needed or accepted just once in a 30-day duration. S. 15.4(1) Reg 50/2010
Despite subsection (1), a lender that is payday not charge, require or accept any penalty or other quantity with regards to a standard by way of a debtor under an alternative loan. S. 15.4(2) Reg 50/2010
The amount of that fee by way of reimbursement, to a maximum of $20.00 in addition to any penalty that may be charged under section 15.4(1) of the Regulation, if a payday lender is charged a fee for a cheque, pre-authorized debit or other negotiable instrument that is dishonoured or if a stop payment order is placed, the payday lender may charge the borrower. S. 15.5 and 15.7(1)(2) Reg 50/2010
Non-compliance with this componenticular part may bring about notice of an penalty that is administrative. A summary of given penalties that are administrative be posted regarding the customer Protection Office web site.
To learn more regarding penalties that are administrative to matter 38 of the document. Continue reading