Payday loan agreements with extended payment plans
 25.1 (1) In this section, “pay period” means, with respect to a payday loan agreement, the greater of, (a)  the period from the day on which the parties enter into the agreement until the day on which the borrower is next regularly due to receive income, and (b)  the period from a day on which the borrower regularly receives income until the next day on which the borrower regularly receives income. O. Reg. 489/17, s. 6. (2) If a lender enters into a third or subsequent payday loan agreement with the same borrower in a 63-day period, the agreement is exempt from section 31 of the Act and the lender shall provide in the agreement that the borrower is required to repay the advance and the cost of borrowing in instalments that are spread equally over, (a)  at least three of the borrower’s pay periods, if the borrower regularly receives income on a semi-monthly, bi-weekly or more frequent basis; or (b)  at least two of the borrower’s pay periods, if the borrower regularly receives income on a less frequent basis than that described in clause (a). O. Reg. 489/17, s. 6. (3) The instalments may be spread over more than the minimum number of the borrower’s pay periods set out in subsection (2) if the lender and the borrower agree to that. O. Reg. 489/17, s. 6. (4) A lender shall not require the borrower to make any instalment payments under subsection (2) that exceed, (a)  35 per cent of the sum of the advance and the cost of borrowing under the payday loan agreement, if the borrower is required to pay instalments under clause (2) (a); or (b)  50 per cent of the sum of the advance and the cost of borrowing under the payday loan agreement, if the borrower is required to pay instalments under clause (2) (b). O. Reg. 489/17, s. 6. (5) If, under section 34 of the Act, a borrower who enters into a payday loan agreement under subsection (2) of this section makes a partial prepayment of any part of the outstanding balance under the agreement, the lender shall, (a)  adjust all future scheduled instalment payments required under this section so that they cover the remaining outstanding balance and they are spread equally over the remaining term of the agreement, unless the borrower requests otherwise when making the prepayment; and (b)  deliver to the borrower an update in writing that sets out the following table: UPDATED Details of Payday Loan Agreement Amount Borrowed   S 

  Total Cost of Borrowing   T 

  Amount Prepaid   U 

  Date of Prepayment   V 

  Balance of Amount Due under the Agreement   W 

  Days Remaining in the Term of the Agreement   X 

  Payment 1: Amount and Due Date   Y 

  Payment 2: Amount and Due Date (if applicable)   Z 

  Payment 3: Amount and Due Date (if applicable)   Z.1 

  Borrower’s Signature   Z.2  where, S =  the advance under the agreement, T =  the cost of borrowing at the time the parties entered into the agreement, expressed as a total amount, U =  the amount prepaid, V =  the date that the prepayment was made, W =  the balance remaining of all payments that the borrower is required to make in connection with the agreement, X =  the days remaining in the term of the agreement, Y =  the amount and due date of the first remaining repayment instalment calculated in accordance with this section, Z =  the amount and due date of the second remaining repayment instalment calculated in accordance with this section, if applicable, Z.1 =  the amount and due date of the third remaining repayment instalment calculated in accordance with this section, if applicable, and Z.2 =  the borrower’s signature. O. Reg. 489/17, s. 6. (6) If the borrower has entered into a third or subsequent payday loan agreement with the same lender in a 63-day period and is required to repay the amount owing under the agreement in more than three instalments under this section, the table mentioned in clause (5) (b) shall include a row similar to the row for Payment 3 for each instalment after the third instalment. O. Reg. 489/17, s. 6. (7) If the term of the agreement that parties enter into under subsection (2) exceeds a total of 62 days, the lender shall ensure that the cost of borrowing in the agreement, when converted to an annual percentage rate, is less than the criminal rate as defined in subsection 347 (2) of the Criminal Code
(Canada). O. Reg. 489/17, s. 6. Prohibited Practices