A payday loan is an unsecured short term loan to meet
unexpected cash needs. Payday loans are for occasional
use only and should not be used to cover continual
shortfalls in a persons budgetary requirements. People
who have ongoing problems meeting their financial
obligations should be consulting credit counselors.
CPLA Members are committed to providing credit
As a condition of membership, all Members of the CPLA
must abide by the following Code of Best Business
Practices and display this Code prominently in their
places of business.
A Member will not grant a customer an extension of an
outstanding payday loan for a fee or advance a new
payday loan to pay out their existing payday loan.
Default and Post-Maturity Interest Charges
A Member shall not grant multiple payday loans to a
customer that in total exceed what the Member initially
approved the customer to borrow.
A Member shall not charge a penalty fee and/or NSF
fee that exceeds an amount set from time to time by the
Association. Interest on each $100 of a payday loan in
default will not exceed $0.90 per week for the first
thirteen weeks and $0.50 per week thereafter.
A Member must advise customers who have defaulted
twice within one year of credit counseling services,
and offer to forgo accrual of interest if the customer
obtains credit counseling.
A Member may not take title to chattels or assets of
a borrower as security for repayment of payday loans.
Loans to Certain Customers
A Member will collect past due accounts in a fair,
lawful and professional manner. Members are prohibited
from taking an assignment of wages.
A Member shall not grant payday loans to customers on
the basis of social assistance payments received by that
Term of Loan
A Member shall not grant a payday loan that exceeds
A Member shall not grant a payday loan with a term
that exceeds 31 days.
Right to Rescind
A Member will keep and maintain records of financial
transactions with their customers in accordance with
standards established by the Association.
A customer shall have the right to rescind a payday
loan at no cost on or before the close of the following
Selling Other Goods or Insurance
Members are prohibited from using personal and
confidential information for marketing or other purposes
unrelated to the payday loan without the consent of the
customer and will comply with all privacy laws.
A Member is prohibited from requiring a customer to
obtain insurance as a condition of taking out a payday
Disclosure to Customer
Members will follow the advertising standards as
established by the Association and must also comply with
all Provincial laws governing advertising.
A Member shall use plain language in their
documentation, will disclose all the fees, costs and
interest in a clear manner and will prominently indicate
the high-cost nature of the payday loan on all loan
Education and Awareness Campaigns
Members shall prominently display the Code of Best
Business Practices, the CPLA logo showing membership in
the Association, credit counseling and CPLA educational
brochures, and information on how customers can contact
the Association with complaints or comments.
The Association will ensure Members comply with all
elements of the Code. A Member will report to the
Association any violation of this Code by any other
Responding to Consumer Complaints
A Member must respond diligently to all complaints of
their customers. If a customer is not satisfied with
redress of their complaint they are invited to contact
the Association action line at 1–800–413–0147 or by
firstname.lastname@example.org. The Association will
investigate and take any appropriate and necessary
action to resolve customer complaints.