Payday Loans Regulation

Payday Loans Regulation, M.R. 99/2007 The Consumer Protection Act , C.C.S.M. c. C200 Regulation 99/2007 Registered July 31, 2007 bilingual version (HTML) Table of Contents Section 1 Definitions 1.1 Interpretation 2 Repealed 2.1 Replacement loan 2.2 Net pay 3 Value received and value given by borrower re payday loan 4 Repealed 5 Conditional exemption 6 Exemption re credit unions 7 Fee for payday lender licence 8 Additional information required for licence application 9 Conditions of a licence 9.1 Displaying licence 10 Bond or security with application 11 Cancellation of bond or security 12 Forfeiture of bond or security 13 Disposition of proceeds of forfeiture 13.1 Maximum cost of credit 14 Additional information required for payday loan agreement 14.0.1 Internet payday loan agreements 14.1 Copy of signed agreement to be given to borrower 14.2 No oral consent for credit checks and employment verification 14.3 Timing and delivery of payday loan advances 14.4 Cancellation of Internet payday loans 15 Meaning of "security" in section 150 15.1 Exemption 15.2 Maximum amount of a loan 15.3 Amount may be charged only once 15.4 Maximum amount payable for default 15.5 Fee for a dishonoured cheque or a stop-payment 15.6 Restricted payday lending activities 15.7 No repeated attempts to process repayment 16 Information to be posted in visible locations 16.1 Internet payday loans 16.2 Payday loans offered by telephone 17 Records must be complete and accurate 18 Borrower contact information 18.1 Repayment re Internet payday loans 18.2 Advertising in relation to payday loans 18.3 Payday loan collection practices 18.4 False information 19 Administrative penalties 20 Coming into force Schedule Definitions 1 The following definitions apply in this regulation. "Act" means The Consumer Protection Act . («  Loi ») "financial institution" means (a) a bank; (b) a credit union; or (c) a trust company or loan company authorized by law to accept money for deposit and carrying deposit insurance in accordance with the Canada Deposit Insurance Corporation Act . (« établissement financier ») "net pay" means the amount of a person's bi-weekly income determined in accordance with section 2.2. (« rémunération nette ») "Payday Loans Part" means Part XVIII (Payday Loans) of the Act. (« partie concernant les prêts de dépannage ») M.R. 50/2010 Interpretation 1.1 For greater certainty, a prepaid card issued or sold to a borrower to enable him or her to access money advanced under a payday loan — regardless of how the prepaid card is described — is a "cash card" within the meaning of that term as defined in section 137 of the Act. M.R. 50/2010 2 [Repealed] M.R. 50/2010 Replacement loan 2.1 For the purpose of clause (b) of the definition "replacement loan" in section 137 of the Act, a payday loan (a) arranged or provided by a payday lender as part of a series of transactions or events that results in the borrower's debt under another payday loan previously arranged or provided by that payday lender being repaid in whole or in part; and (b) that advances an amount in excess of the borrower's debt under the payday loan previously arranged or provided by that payday lender; is a replacement loan. M.R. 50/2010 Net pay 2.2(1) A person's net pay is to be determined according to the following formula: net pay = MNI × 12/26 In this formula, MNI is the person's net income for the most recent previous calendar month in which the person received income, calculated by adding all income received by the person from all sources during that month, minus all compulsory and voluntary deductions. Payday loan not to be considered income 2.2(2) For greater certainty, (a) the proceeds of a payday loan are not to be considered income for the purpose of this section; and (b) even though net pay is calculated on a bi-weekly basis under this regulation, the initial term of a payday loan to which the Payday Loans Part will apply may be any length of time that is not longer than 62 days. M.R. 50/2010 Value received and value given by borrower re payday loan 3(1) For the purposes of the Payday Loans Part and this regulation, in determining the cost of credit in relation to a payday loan under section 6 of the Act, (a) value received or to be received by the borrower in connection with the payday loan does not include the cash price of any goods or services, including insurance, purchased by the borrower from the payday lender, if the payday loan is contingent on that purchase; and (b) the value given or to be given by a borrower in connection with the payday loan includes, without limitation, (i) the amount or consideration charged, paid or given, or to be charged, paid or given, for the purchase of any goods or services, including insurance, if the payday loan is contingent on that purchase, and (ii) any fee, commission, charge, penalty, interest or other amount or consideration charged, paid or given, or to be charged, paid or given (A) for cashing or negotiating a cheque, (B) for a pre-authorized debit, (C) in relation to a cash card, including an activation fee, a re-activation fee, an inactivity fee and initial service fees, or (D) by or on behalf of a borrower to a broker for arranging or attempting to arrange a payday loan, whether or not the goods or services to which the fee, commission, charge, penalty, interest or other amount or consideration relates are optional for the borrower, and whether or not the amount or consideration is charged, paid or given, or is to be charged paid or given, by or to the lender or any other person. Meaning of "initial service fees" 3(2) In this section, "initial service fees" means all service fees charged to access money advanced under a payday loan for the first time following any advance of a payday loan, including, without limitation, the following: (a) if a periodic fee is charged, such as a fee relating to the maintenance or use of the cash card, the first charging of that periodic fee; (b) the greater of the following two fees that the issuer of the cash card will charge: (i) the Automated Teller Machine (ATM) fee that will be charged if the borrower uses the cash card to withdraw cash, (ii) the fee that will be charged if the borrower uses the cash card to purchase a good or service in a retail sale. M.R. 50/2010 4 [Repealed] M.R. 50/2010 Conditional exemption from certain provisions of the Payday Loans Part 5 Subsections 140(4) and (5), subclause 148(1)⁠(a)⁠(ii) and section 156 of the Act do not apply to a payday lender who meets both of the following criteria: 1. The payday lender does not charge, require or accept as payment in relation to a payday loan any amount or consideration that would result in the total cost of credit of the loan being greater than the criminal rate as that term is defined in subsection 347(2) of the Criminal Code (Canada). 2. The payday lender is a corporation without share capital that carries on its activities without pecuniary gain for its members. Exemption from certain provisions of the Payday Loans part for credit unions 6 Subsections 140(4) and (5) of the Act do not apply to credit unions. Fee for payday lender licence 7 The fee payable for a payday lender licence or a renewal of a licence for one year or part of a year is $5,500. Additional information required for licence application 8 In addition to the information required on the application form, an applicant must provide the following information: (a) a completed sample payday loan agreement for a $300. loan for 12 days that demonstrates that neither the total cost of credit nor any component of the cost of credit exceeds the maximum allowed by regulation; (b) a written undertaking to the director that the applicant is familiar and will comply with Manitoba's consumer protection legislation in respect of payday loans; (c) the name of an officer or employee who resides in Manitoba and who is authorized to provide information requested by the director and to receive and disseminate information given by the director; (d) if the applicant is a credit union, a certificate of status issued pursuant to The Credit Unions and Caisses Populaires Act . M.R. 50/2010 Conditions of a licence 9 The following conditions apply to a payday lender licence: 1. The payday lender must notify the director in writing within 14 days of the following changes: (a) any change to the name, address or other information set out in the application form and required under section 8; (b) any change to the operation of the payday lender's business that affects or is likely to affect the offering, arrangement or provision of payday loans. 2. If the payday lender is a credit union, the lender must immediately notify the director in writing if the credit union is declared to be under supervision pursuant to section 209 of The Credit Unions and Caisses Populaires Act . 3. The payday lender must immediately notify the director if the lender's licence, or other form of approval, to operate as a payday lender in any other jurisdiction, is suspended or cancelled. 4. The payday lender must not, at the location for which the licence is issued or at any other location, assist — or allow any person to assist — a person who does not have a valid payday lender licence issued under the Act to offer, arrange or provide a payday loan in any way, including by (a) making available to any member of the public, by any means including by means of the Internet, any information about payday loans offered, arranged or provided by a person who does not have a valid payday lender licence issued under the Act; (b) making available to any member of the public any equipment or other means, including Internet access, by which information may be obtained about payday loans offered, arranged or provided by a person who does not have a valid payday lender licence issued under the Act; (c) assisting any person, by any means, including by means of the Internet, to obtain a payday loan from a person who does not have a valid payday lender licence issued under the Act; (d) assisting any person, by any means, to access money provided under a payday loan by a person who does not have a valid payday lender licence issued under the Act; or (e) assisting any person, by any means, to repay, in whole or in part, a payday loan arranged or provided by a person who does not have a valid payday lender licence issued under the Act, including providing or debiting a cash card or other device for this purpose. M.R. 50/2010 ; 89/2011 Displaying licence 9.1(1) A payday lender must prominently display its payday lender licence in the location for which the licence is issued. Communications with borrower 9.1(2) A payday lender must include its name as shown on its licence, its licence number and its licence expiry date in any communication — other than an oral communication — with a borrower. Internet payday loans 9.1(3) If a payday lender offers, arranges or provides Internet payday loans, it must prominently display its name as shown on its licence, its licence number and its licence expiry date at or near the top of the introductory page of the website for borrowers in Manitoba. Licence is not an endorsement 9.1(4) A licensed payday lender must not represent, either expressly or by implication, that its licence is an endorsement or approval of the payday lender by the government. M.R. 50/2010 Bond or security with application 10(1) An application for a payday lender licence or renewal of a licence must be accompanied by (a) a bond of a guarantee insurance or surety company authorized to carry on business in Manitoba that is in a form acceptable to the director; (b) a deposit of cash or negotiable bonds that is acceptable to the director as security; or (c) an irrevocable letter of credit payable to the Minister of Finance given by a bank, trust company or credit union licensed to carry on business in Manitoba that is in a form acceptable to the director as security; that is in the amount of $25,000. Duration of bond or security 10(2) The bond or security must be maintained (a) while the licence is valid; (b) while the application for renewal is pending; and (c) for two years after the licence ceases to be valid or is cancelled or suspended. No interest 10(3) The bond or security does not bear interest. Cancellation of bond or security 11(1) The bond or security may not be cancelled by any person except with 90 days' written notice of intention to cancel given to the director. Effective date of cancellation 11(2) The notice of intention to cancel the bond or security must state the date on which the cancellation becomes effective. This date must be at least 90 days after the director receives the notice. Delivery of bond or security 11(3) When a bond or security has been cancelled, the director may, following two years after the cancellation, deliver the bond or security to the person bound by it or to the person who provided the security, as the case may be. Delivery before two-year period ends 11(4) Despite subsection (3), if the cancelled bond or security is immediately replaced with another bond or security that meets the requirements under subsection 10(1), the director may deliver the cancelled bond or security, with conditions, to the appropriate person before the two-year period referred to in subsection (3) expires. Forfeiture of bond or security 12(1) The director may, in his or her discretion, declare a bond or security forfeited if (a) the payday lender contravenes subsection 147(1), 152(1), 153(1) or 154(1) of the Act and is unable or refuses to reimburse the borrower as required by clause 147(2)⁠(b), 152(2)⁠(b), 153(2)⁠(b) or 154(2)⁠(b) of the Act, as the case may be; (b) the payday lender has been convicted of (i) an offence under the Act, or (ii) an offence under the Criminal Code (Canada) or any other Act that, in the director's opinion, involves a dishonest action or intent, and the conviction has become final; or (c) proceedings by or in respect of a payday lender have been taken under the Bankruptcy and Insolvency Act (Canada) either by way of assignment or by petition or where proceedings have been taken by way of winding up, and in the case of a petition, a receiving order under the Bankruptcy and Insolvency Act (Canada) or a winding-up order has been made and the order has become final. Notice may be given by the director 12(2) Before making a declaration of forfeiture under subsection (1), the director may notify the person bound by it, in writing, (a) that the director intends to declare the bond or security forfeited, and why; and (b) that the person may, within 14 days after being served with the notice, make a written submission to the director as to why the bond or security should not be forfeited. Extension of time 12(3) The director may extend the 14-day period referred to in clause (2)⁠(b). If no submission made 12(4) If the person does not make a submission under clause (2)⁠(b), the director may take the action stated in the notice. Decision after submission 12(5) After considering a written submission, the director may declare the bond or security forfeited. Debt due to government 12(6) The amount of the forfeited bond or security is a debt due to the government by the person bound by it. The debt is payable on demand. Disposition of proceeds of forfeiture 13(1) The director must distribute the forfeited bond or security (a) first, in full satisfaction of the claims of any borrower who is or becomes entitled to a reimbursement under clause 147(2)⁠(b), 152(2)⁠(b), 153(2)⁠(b) or 154(2)⁠(b) of the Act, as the case may be; and (b) after that, to the government on account of the reasonable legal and administrative expenses incurred by the government. Amount distributed pro rata 13(2) If the amount to be reimbursed under clause (1)⁠(a) exceeds the amount of the bond or security, the bond or security must be distributed pro rata amongst the claimants. Director's powers 13(3) The director is empowered to settle and determine all claims with respect to the bond or security without notice. Maximum cost of credit 13.1(1) Subject to subsections (2) and (3), for the purpose of subsection 147(1) of the Act, the total cost of credit for a payday loan must not be greater than 14% of the principal amount of the payday loan. Replacement loan 13.1(2) For the purpose of subsection 147(1) of the Act, the total cost of credit for a replacement loan must not be greater than 5% of the principal amount of the replacement loan. Extensions, renewals and consecutive payday loans 13.1(3) For the purpose of subsection 147(1) of the Act, the total cost of credit for a payday loan must not be greater than 5% of the principal amount of the payday loan, if (a) the payday loan is an extension or renewal of a payday loan previously arranged or provided; or (b) the payday loan is arranged or provided by a payday lender within seven days after the borrower repaid in full another payday loan previously arranged or provided by that payday lender. M.R. 50/2010 ; 113/2025 Additional information required for payday loan agreement 14(1) In addition to the information referred to in clause 148(1)⁠(a) of the Act, the following information must be included in the payday loan agreement: (a) the payday lender's business name or style, business and mailing address, email address, and telephone and fax numbers; (a.1) the payday lender's licence number; (b) the borrower's name, address and telephone number; (c) the principal amount of the loan; (d) the term of the loan in days; (e) the amount of the initial advance; (f) the total cost of credit and the APR; (g) an itemization of all fees, commissions, charges, penalties, interest and other amounts or consideration charged, paid or given, or to be charged, paid or given, by or to the lender or any other person, in relation to the loan; (h) the date on which payment is due to the payday lender and, if being repaid by more than one payment, the date and amount of each payment; (i) if a cash card is issued in respect of a payday loan, the following information: (i) the terms and conditions for use of the cash card, (ii) the amount of money advanced that is available on the cash card, (iii) the expiry date, if any, of the cash card, (iv) an itemization of each fee, commission, charge, penalty, interest or other amount or consideration charged, paid or given, or to be charged, paid or given, by or to the lender or any other person, in relation to the cash card; (j) the following statements: "If you have any questions or concerns about payday loans, cancellation rights or collection practices, contact the Consumer Protection Office at (204) 945-3800, or toll free at 1-800-782-0067." "If you feel you could benefit from debt counselling, contact the Consumer Protection Office at (204) 945-3800, or toll free at 1-800-782-0067 for information." " The Consumer Protection Act provides that the Consumer Protection Office may review and verify the information, including personal information, in this loan agreement for the purposes of ensuring compliance with the Act, the regulations and the terms and conditions of the payday lender's licence. The Consumer Protection Office may contact you directly to verify the information. It will not use your information for other purposes without your consent or unless permitted to do so by law." (k) information about the cancellation rights under section 149 of the Act, including the procedure for cancelling a payday loan and the time limit for doing so; (l) information about the consequences of the payday lender's failure to comply with subsections 147(1), 152(1), 153(1) and 154(1) of the Act; (m) if the payday loan agreement relates to an Internet payday loan, information about how any amounts or consideration described in subsections 147(2), 152(2), 153(2) and 154(2) of the Act will be reimbursed. Attempt to affect jurisdiction void 14(2) Any provision in a payday loan agreement purporting to restrict the application of the law of Manitoba or to restrict jurisdiction or venue to a forum outside Manitoba is void. Additional terms and conditions 14(3) Any term or condition in a payday loan agreement that is in addition to those required by the Act or this regulation must not conflict with any required term or condition, or with any provision of the Act or its regulations. To the extent that a term or condition conflicts with a required term or condition, or with a provision of the Act or its regulations, it is void. Information that must be on page one of the agreement 14(4) The following information or markings must be on the first page of a payday loan agreement: (a) the information referred to in clauses (1)⁠(a) to (d), (1)⁠(f), (1)⁠(g), (1)⁠(h) and (1)⁠(j); (b) the date and time of day on which the agreement was entered into; (c) the date and time of day that the initial advance is being made or the cash card is being provided; (d) a statement that the loan is a high-cost loan; (e) the payday lender's trademark, trade name or logo; (f) a line for the borrower's signature. No other information to be on page one 14(5) Subject to subsection (9), no information or marking other than the information described in subsection (4) is to be on the first page of a payday loan agreement. Information that must be on subsequent pages 14(6) The following information or markings must be on the second page — and continue on the immediately following pages if additional space is needed — of a payday loan agreement: (a) the nature of, and the amount and timing of, any default charges; (b) a statement that the borrower has the right to cancel the loan within 48 hours after receiving the initial advance or the cash card; (c) the form of notice that the borrower may use to give written notice that he or she is cancelling the loan; (d) the form of receipt that the lender must use to acknowledge receipt of what was paid or returned by the borrower upon cancelling the loan; (e) a statement that the borrower is entitled to prepay the outstanding balance at any time without charge or penalty and is entitled to make partial prepayments without charge or penalty on any scheduled payment date; (f) a statement that if any optional services are provided by the payday lender, the borrower is entitled to cancel those services in accordance with section 23 of the Act; (g) a statement that if the payday lender requires the borrower to obtain insurance as a condition of the loan, the borrower has the right to obtain the insurance from any insurer authorized by law to provide it in accordance with section 21 of the Act ; (h) a statement that if the borrower chooses to consent to a "personal investigation" as defined in The Personal Investigations Act , that consent must be given in writing, including by electronic means, but not orally; (i) information about the payday lender's privacy policy; (j) a line for the borrower's signature. No other information to be on subsequent pages 14(7) Subject to subsection (9), no information or marking other than the information described in subsection (6) is to be on any page in which the information described in subsection (6) appears. Information to be clear and understandable 14(8) A payday lender must ensure that the information described in subsections (4) and (6) is presented in a clear and understandable manner in a payday loan agreement. Pages that must be signed by the borrower 14(9) A payday lender must ensure that the borrower signs the following pages of the payday loan agreement: (a) the first page; (b) the second page, and any following pages on which any of the information or markings described in subsection (6) appear. This subsection does not prevent a lender from requiring a borrower to sign any additional pages. M.R. 3/2009 ; 50/2010 ; 195/2014 Internet payday loan agreements 14.0.1(1) Before a borrower enters into an Internet payday loan agreement, the payday lender must ensure that its Internet website is designed in a manner (a) that allows a prospective borrower to readily understand what action or actions will result in his or her acceptance of the agreement; (b) that makes the agreement accessible to the prospective borrower in a manner that allows him or her to acknowledge and accept the terms and conditions of the agreement; and (c) that allows a prospective borrower to print the agreement. Borrower must be able to print agreement 14.0.1(2) After an Internet payday loan agreement is entered into, the payday lender must ensure that, for the term of the loan, its website is designed and maintained in such a manner that it allows the borrower to print a copy of the agreement. Consent to enter an Internet payday loan agreement 14.0.1(3) Before providing the initial advance to the borrower under an Internet payday loan agreement, the payday lender must ensure that the borrower has consented to entering into the agreement, and must make a record evidencing that consent. Subsection 17(2) applies to the maintaining of that record. M.R. 50/2010 Copy of signed agreement to be given to borrower 14.1(1) In addition to the document referred to in clause 148(1)⁠(a) of the Act, a payday lender must — except in the case of an Internet payday loan — give the borrower a copy of the completed and signed final payday loan agreement, at no charge, not later than the day that the initial advance of money under the payday loan is made. Requesting additional copy of the agreement 14.1(2) In addition to any copy required to be given under subsection (1), a borrower may request an additional copy of the borrower's completed and signed final payday loan agreement. For greater certainty, this subsection and subsections (3) to (5) apply in the case of an Internet payday loan, even though subsection (1) does not apply. Time and manner of request 14.1(3) The borrower may make the request orally or in writing at any time after entering into the payday loan agreement. Time limits for complying 14.1(4) The payday lender must provide or mail the copy to the borrower (a) within one business day of the request; or (b) by the next day that the payday lender is open for business, if the payday lender is not open for business on the day described in clause (a). First copy free 14.1(5) The payday lender must not charge a fee for the first copy of the agreement requested by the borrower under subsection (2), if the request is made within one year after the end of the term of the payday loan. M.R. 3/2009 ; 50/2010 No oral consent for credit checks and employment verification 14.2 Despite section 7 of the Personal Investigations Regulation , Manitoba Regulation 392/87 R, if a borrower chooses to consent to a "personal investigation" as defined in The Personal Investigations Act , that consent must be given in writing, including by electronic means, but not orally. M.R. 3/2009 ; 50/2010 Timing and delivery of payday loan advances 14.3(1) A payday lender must ensure that the initial advance of money under a payday loan is delivered to the borrower immediately after the payday loan agreement is entered into. Timing and delivery of Internet payday loan advances 14.3(2) In the case of an Internet payday loan or other payday loan not obtained by the borrower in person , the payday lender must deliver instructions to its financial institution to transfer the amount of the initial advance under the payday loan to the borrower's account with a financial institution on the same day on which the borrower and the payday lender enter into the payday loan agreement. M.R. 50/2010 Cancellation of Internet payday loans 14.4 Despite subsection 149(1) of the Act, a borrower may cancel an Internet payday loan within 48 hours — excluding Sundays and other holidays — after the payday loan agreement was entered into. M.R. 50/2010 Meaning of "security" in section 150 of the Act 15 For greater certainty, the term "security" in section 150 of the Act does not include a post-dated cheque, pre-authorized debit or a future payment of a similar nature provided by the borrower as repayment for a loan. Exemption 15.1 Section 151 of the Act does not apply to ASKI Financial Inc. M.R. 3/2009 Maximum amount of a loan 15.2(1) For the purpose of subsection 151.1(1) of the Act, the prescribed proportion of the borrower's net pay is 30%. Maximum amount of a replacement loan 15.2(2) Despite subsection (1), for the purpose of subsection 151.1(1) of the Act the prescribed proportion of the borrower's net pay for a replacement loan is as follows: (a) 30% of the borrower's net pay, except in the circumstances described in clause (b); (b) if the amount that is 30% of the borrower's net pay is less than the amount that the borrower owes under the payday loan previously arranged or provided by that payday lender, the prescribed proportion is 30% of the borrower's net pay plus whatever additional portion of the borrower's net pay is necessary to equal the amount that the borrower owes under the payday loan previously arranged or provided. M.R. 50/2010 Amount may be charged only once 15.3 A payday lender must not charge, require or accept the payment of any amount or consideration under subsection 152(1) of the Act more than once in respect of a payday loan. M.R. 50/2010 Maximum amount payable for default 15.4(1) For the purpose of subsection 153(1) of the Act, 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. This penalty may be charged, required or accepted only once in a 30-day period. No default charge for replacement loan 15.4(2) Despite subsection (1), a payday lender must not charge, require or accept any penalty or other amount in relation to a default by a borrower under a replacement loan. M.R. 50/2010 Fee for a dishonoured cheque or a stop-payment 15.5 In addition to any penalty that may be charged under subsection 15.4(1), if a payday lender is charged a fee for a cheque, pre-authorized debit or other negotiable instrument that is dishonoured or upon which a stop-payment order is placed, the payday lender may charge a fee to the borrower in the same amount, by way of reimbursement. But in no case shall the fee charged by the payday lender to the borrower exceed $20. M.R. 50/2010 Restricted payday lending activities 15.6(1) A payday lender must not (a) accept a cheque, pre-authorized debit or other negotiable instrument from a borrower unless it is made payable to the payday lender; (b) require that the term of a payday loan ends before the day on which the borrower is next regularly due to receive income; (c) make or attempt to make any unauthorized withdrawals from a borrower's account with a financial institution; (d) disclose any information about the payday loan or the fact that the borrower has a payday loan to any person other than the borrower, unless (i) the borrower gives his or her written and informed consent to the disclosure, (ii) the disclosure is to a personal reporting agency, as defined in The Personal Investigations Act , (iii) the disclosure is to a collection agent with whom the payday lender has contracted to collect a debt owing under the payday loan, or (iv) the disclosure is required by law; (e) state or imply that entering into a payday loan agreement will improve the borrower's personal credit rating if that is not accurate or correct; or (f) give, offer to give, or promise to give — directly or indirectly — any prize or reward (i) as an incentive or enticement to enter into a payday loan agreement, or (ii) for entering into a payday loan agreement. Using information about a borrower 15.6(2) A payday lender may only use information about a borrower for the purpose of providing or administering payday loans to the borrower or collecting repayments of those loans. Information not to be used for the purchase of other goods or services 15.6(3) Without limiting subsection (2), a payday lender must not use information about a borrower for the purpose of providing, or offering to provide, any other goods or services. Using account information 15.6(4) If a borrower provides a pre-authorized debit in exchange for the advance of money, the payday lender may only use the information about the borrower's account with a financial institution to access the account for the purposes of the borrower's repayment of the payday loan. M.R. 50/2010 No repeated attempts to process repayment 15.7(1) A payday lender may present a cheque, pre-authorized debit or other negotiable instrument that the borrower provided in exchange for the advance of money to a financial institution only once. Exception 15.7(2) Despite subsection (1), a payday lender may present a cheque, pre-authorized debit or other negotiable instrument to a financial institution more than once, but only if (a) the borrower is not charged a fee, penalty or other amount by the financial institution to process it; and (b) in circumstances where the payday lender is charged a fee, penalty or other amount by the financial institution to process it, the lender does not in turn charge a fee to the borrower under section 15.5. M.R. 50/2010 Information to be posted in visible locations 16(1) For the purpose of section 156 of the Act, a payday lender must post at each licensed location (a) a sign measuring not less than 61 cm in width and 76 cm in height that is visible to borrowers immediately upon entering the location, and that contains the information set out in subsection (2) in the following font sizes: (i) the information required under clause (2)⁠(a) must be shown in not less than 110-point type, (ii) the information required under clauses (2)⁠(b) to (d) must be shown in not less than 72-point type, (iii) the information required under clause (2)⁠(e) must be shown in not less than 54-point type; and (b) a sign that is visible to borrowers at each place within that location where payday loans are negotiated, and that contains the information set out in subsection (2) in not less than 28-point type and in a colour that contrasts with the background. Required information 16(2) Only the following content is to appear on a sign referred to in subsection (1): (a) at the top of the sign, the following statement: "Payday Loans are High-Cost Loans"; (b) after the statement referred to in clause (a), the following statement: "In Manitoba, the maximum allowable charge for a payday loan is 14% of the principal amount of the loan." (c) after the statement referred to in clause (b), the following statement: "Sample $300 loan for 12 days:" (d) on a separate indented line, the following statements and amounts in the order listed: "Total cost of credit =" followed by the total cost of credit for a $300 loan for 12 days; "The Annual Percentage Rate (APR)" followed by the APR for a $300 loan for 12 days; "The total that must be repaid is" followed by the amount to be repaid for a $300 loan for 12 days; (e) at the bottom of the sign, (i) the following statement: "This information meets the requirements of The Consumer Protection Act ", and (ii) the payday lender's licence number for that location. M.R. 50/2010 ; 113/2025 Internet payday loans 16.1(1) A payday lender who offers, arranges or provides Internet payday loans must display a notice that contains the content required under subsection 16(2) displayed in a clear and understandable manner, and in a font colour that contrasts with a white background and purple border. Notice 16.1(2) The notice referred to in subsection (1) must be made visible to borrowers (a) at or near the top of the introductory page of the website for Manitoba borrowers; and (b) in a location on the website that comes before the payday loan application. M.R. 50/2010 Payday loans offered by telephone 16.2(1) A payday lender who offers, arranges or provides payday loans by telephone must provide an oral statement of the content set out in subsection 16(2), the name of the payday lender as shown on its licence, and its licence number to the borrower in a clear and understandable manner before the borrower enters into the payday loan agreement. Making and maintaining records 16.2(2) The payday lender must make records of (a) the oral statement that was provided to the borrower; (b) the name of the person who provided the oral statement to the borrower; and (c) the date and time that the oral statement was provided. Subsection 17(2) applies to the maintaining of records made under this subsection. M.R. 50/2001 Records must be complete and accurate 17(1) A payday lender's records must be complete and accurate to enable the following to be determined and verified: (a) the particulars of each payday loan agreement entered into, including the information referred to in clauses 14(1)⁠(a) to (m) and information used to determine — including any documents relied upon in making that determination — the amount of the borrower's net pay; (b) the amount of each fee, charge, penalty, interest and other amount or consideration charged, required or accepted, by the payday lender or any other person, in relation to each payday loan; (c) the number of payday loans and replacement loans that the payday lender offers, arranges or provides within a time period specified by the director; (d) the particulars about the payday lender's collection practices in respect of each payday loan, including a communications log of each contact or attempted contact with each borrower; (e) the payday lender's compliance with the Payday Loans Part, the regulations and the terms and conditions of its licence. How long records must be kept 17(2) A payday lender must maintain records of all payday loans that it offers, arranges or provides, and all payday loan agreements that it enters into, for at least two years from the date the loan was offered, arranged or provided, or the agreement was entered into. M.R. 3/2009 ; 50/2010 Borrower contact information 18 Upon request, a payday lender must provide a borrower's name, address and telephone number to the director in order to verify compliance with the Payday Loans Part, the regulations and the terms and conditions of its licence. M.R. 3/2009 ; 50/2010 Repayment re Internet payday loans 18.1(1) If an advance of money under an Internet payday loan is delivered electronically, the borrower may repay the loan by giving instructions to his or her financial institution to transfer the amount of repayment to the payday lender. Reimbursement re Internet payday loans 18.1(2) For the purpose of clauses 147(2)⁠(b), 152(2)⁠(b), 153(2)⁠(b) and 154(2)⁠(b) of the Act, a payday lender must reimburse the borrower under an Internet payday loan agreement by giving instructions without delay to its financial institution to transfer the amount of the reimbursement to the borrower. Exception 18.1(3) Despite subsection (2), the borrower under an Internet payday loan agreement may instruct the payday lender to reimburse him or her in another manner. M.R. 50/2010 Advertising in relation to payday loans 18.2 A payday lender must ensure that its advertising in relation to payday loans, including advertisements on radio and television, includes the following statement: "To learn more about your rights as a payday loan borrower, contact the Consumer Protection Office at 945-3800, 1-800-782-0067 or at ." M.R. 50/2010 ; 195/2014 Payday loan collection practices 18.3(1) In addition to the prohibitions set out in section 98 of the Act, no payday lender or other person shall, in collecting or attempting to collect payment of a debt arising from a payday loan, do any of the following things: (a) communicate with the borrower, any member of his or her household or any of his or her relatives, neighbours, friends, acquaintances or business contacts in a manner that constitutes harassment; (b) contact or attempt to contact the borrower or any other person referred to in clause (a) in a manner that results in the charges or costs of the communication being paid by the borrower or the other person; (c) contact or attempt to contact the borrower or any other person referred to in clause (a) (i) more than six times in a seven-day period, or (ii) more than three times in a seven-day period by any one method of communication, not including ordinary mail; (d) collect or attempt to collect repayment from anyone other than the borrower; (e) disclose or threaten to disclose to any person listed in clause (a), or to the borrower's employer, the fact that the borrower has defaulted on a payday loan; (f) publish or make public in any other way the fact that the borrower has defaulted on a payday loan, or threaten to do so. Meaning of "harassment" 18.3(2) For the purpose of clause (1)⁠(a), "harassment" includes the following: (a) the use of threatening, profane, intimidating or coercive language; (b) the use of undue, excessive or unreasonable pressure. Contacting borrower's employer 18.3(3) No person, including a payday lender, shall contact a borrower's employer or any of the employer's employees for the purpose of collecting or attempting to collect payment of a debt arising from a payday loan. But a payday lender or a person authorized by the payday lender may contact a borrower's employer if (a) the borrower has consented to a "personal investigation" as defined in The Personal Investigations Act ; (b) the contact occurs before the borrower enters into a payday loan agreement; and (c) the contact is made only once in respect of a payday loan and for the sole purpose of confirming the borrower's employment, occupation, length of employment, employment income or business address. Contacting borrower at place of employment 18.3(4) If a borrower (a) requests that the payday lender not contact the borrower at his or her place of employment; (b) makes reasonable arrangements with the payday lender to discuss the payday loan at another location; and (c) discusses the payday loan with the payday lender at that other location; a payday lender, or any person acting on behalf of the payday lender, must not contact the borrower at his or her place of employment. M.R. 50/2010 False information 18.4 A payday lender must not, in respect of a payday loan, including a payday loan in default, give any person, directly or indirectly, any false, misleading or deceptive information about the payday loan. M.R. 50/2010 Provisions of the Act for which a notice of administrative penalty may be issued 19(1) A notice of administrative penalty may be issued under subsection 136(1) of the Act if a person fails to comply with any of the following provisions of the Payday Loans Part: (a) subsection 139(1) (licence required to provide payday loans); (b) subsection 139(2) (use of name); (c) subsection 141(1) (licence not transferable or assignable); (d) subsection 147(1) (limit re cost of credit); (e) clause 147(2)⁠(b) (reimbursement); (f) section 148 (documents to be given at time of initial advance); (g) subsection 149(6) (payday lender to give receipt); (h) subsection 149(8) (no fee on cancellation); (i) subsection 149(9) (refund to borrower on cancellation of loan); (j) section 150 (no security to be taken); (k) subsection 151(2) (requesting or requiring wage assignments prohibited); (k.1) subsection 151.1(1) (maximum amount of loan); (l) subsection 152(1) (limit on charges for extension, renewal or for replacement loan); (m) clause 152(2)⁠(b) (reimbursement); (n) subsection 153(1) (limit to amounts payable for default); (o) clause 153(2)⁠(b) (reimbursement); (p) subsection 154(1) (concurrent loans prohibited); (q) clause 154(2)⁠(b) (reimbursement); (q.1) section 154.1 (discounting prohibited); (q.2) section 154.2 (tied selling restricted); (r) section 156 (information to be posted); (s) section 157 (records to be kept); (t) section 158 (records to be made available for inspection); (u) subsection 159(4) (assistance to officer or authorized person). Provisions of this regulation for which a notice of administrative penalty may be issued 19(1.1) A notice of administrative penalty may be issued under subsection 136(1) of the Act if a person fails to comply with any of the following provisions of this regulation: (a) subsection 14.0.1(1) (Internet payday loan agreements); (b) subsection 14.0.1(2) (borrower must be able to print agreement); (c) subsection 14.0.1(3) (consent to enter an Internet payday loan agreement); (c.1) subsection 14.1(1) (copy of signed agreement); (d) subsection 14.1(5) (first copy free); (e) subsection 15.6(1) (restricted payday lending activities); (f) subsection 15.7(1) (no repeated attempts to process repayment); (g) subsection 16.1(1) (Internet payday loans); (h) section 18.2 (advertising in relation to payday loans); (i) clause 18.3(1)⁠(b), (c), (d), (e) or (f) (payday loan collection practices). Administrative penalty amounts — individuals 19(2) The amount of an administrative penalty to be imposed on an individual is as follows: (a) first contravention Administrative penalty amounts — corporations 19(2.1) The amount of an administrative penalty to be imposed on a corporation is as follows: (a) first contravention Form for the notice of administrative penalty 19(3) A notice of administrative penalty must be in Form 1 of the Schedule. M.R. 50/2010 ; 7/2015 Coming into force 20(1) Subject to subsections (2) to (4), this regulation comes into force on the day that it is registered under The Regulations Act . Coming into force: sections 4 to 13 20(2) Sections 4 to 13 come into force on the same day that subsection 140(1) of The Consumer Protection Act , as enacted by section 3 of The Consumer Protection Amendment Act (Payday Loans) , S.M. 2006, c. 31, comes into force. 20(3) The following provisions come into force on the same day that subsection 148(1) of The Consumer Protection Act , as enacted by section 3 of The Consumer Protection Amendment Act (Payday Loans) , S.M. 2006, c. 31, comes into force: (a) section 14; (b) section 14.1; (c) section 14.2; (d) section 15; (e) section 15.1; (f) section 17; (g) section 18; (h) clauses 19(1)⁠(f) to (k); (i) clauses 19(1)⁠(s) to (u); (j) subsections 19(2) and (3). 20(4) The following provisions come into force on the same day that section 147 of The Consumer Protection Act , as enacted by section 3 of The Consumer Protection Amendment Act (Payday Loans) , S.M. 2006, c. 31, comes into force: (a) section 16; (b) clauses 19(1)⁠(a) to (e); (c) clauses 19(1)⁠(l) to (r). M.R. 3/2009 SCHEDULE Notice of Administrative Penalty