Can one lender give me two loans at the same time?
No, in the provinces with the most detailed rules. Ontario says a lender can’t issue another payday loan until you’ve repaid the first in full. British Columbia says a lender must not issue more than one loan at the same time. Alberta says a payday lender can’t offer you another payday loan while you have one outstanding. Lenders also can’t roll over a loan, meaning they can’t extend it for a fee or lend you new money to pay off the old loan.
What happens on my third loan in a short period?
| Province | Rule |
|---|---|
| Ontario | Third loan within 63 days: the lender must offer an extended payment plan. Paid weekly, every two weeks or twice a month: at least three pay periods, each instalment no more than 35% of the total. Paid monthly: at least two pay periods. |
| British Columbia | Third loan in two months: you can repay it in three bi-weekly payments. |
| Alberta | Every loan is repaid in instalments over at least 42 days and no more than 62. |
What about loans from different lenders?
The rules above apply to each lender. Borrowing from a second lender to cover the first is the most common way people end up in a cycle. Every new loan adds another $14 for every $100, and the repayments land on the same paydays. If you’re there, the steps on getting out of payday loans will help, and a non-profit credit counsellor can handle several lenders at once for free.
How much does repeat borrowing cost?
Taking a $500 loan, repaying it, and borrowing $500 again every two weeks for three months costs $420 in fees, and you still owe $500 at the end. That’s why the rules push lenders toward instalment plans on repeat loans.