Under the Ontario Payday Loans Act, 2008, payday lenders and payday loan brokers must possess a license issued by the Ontario Government. A payday loan is an advancement of money in exchange for a future payment, but not for any guarantee or security on any property, and does not include a margin loan, pawnbroking, a line of credit or a credit card. A payday lender is any entity, including an individual, that makes a payday loan to a borrower or holds itself out as available to make a payday loan.
The payday loan license holder—or licensee—must have at least one office that is physically located in Ontario. This office of the licensee cannot be a residence. Bank accounts of the licensee must be in the name of the licensee and be located at a chartered bank or credit union. Special rules apply to partnerships and corporations with respect to residency of the principals of the licensee.
At the present time the fee for obtaining a license for a licensee's main office is $750. There is an additional fee of $990 for any branch offices. All applicants must obtain a police records check through the Canadian Police Information Centre (CPIC).
Anyone interested in applying for an Ontario payday loan license can go online and obtain not only a 2-page Information Sheet but also the 7-page Application Form at the following link: Form: 045-12104E