Quebec borrowing: the 35% limit and high-cost credit

Criminal Code § 347 defines a criminal rate as an annual percentage rate exceeding 35%, calculated in accordance with generally accepted actuarial practices and principles. Its definition of interest covers more than the stated borrowing interest.

• Justice Canada — Criminal Code § 347

Ask for the complete agreement, money advanced, payment dates, all charges and the lender’s reported annual rate. A 35% headline does not mean you can add arbitrary brokerage or administration charges outside the calculation. Whether a particular charge and agreement fall within the law requires their actual terms and the applicable provisions.

This guide concerns household borrowing. Do not transfer its overview to business-purpose arrangements, pawn transactions or other special categories without checking their separate treatment. A legal maximum is not an endorsed price, a guarantee of approval or a test of affordability.

FCAC’s current list of provinces with regulated payday fees does not include Quebec. For other provinces and territories, its guide describes the 35% criminal-interest limit rather than the special per-$100 payday cost used in provinces with that regime.

• FCAC — payday costs and provincial differences

Do not take a payday fee advertised for another province and assume it can be charged to you in Quebec. Ask which legal entity lends, which contract and jurisdiction are used and which regulator can explain the offer. An online address, a “Canadian” brand or a claim of being offshore does not answer these questions.

If the provider describes its credit as a personal loan, cash advance or brokerage service, examine the payment obligation rather than relying on the label. Keep the advertisement and written quote if the price changes after you supply documents.

Quebec’s OPC describes high-cost credit as a credit rate above the Bank of Canada bank rate plus 22 percentage points. It specifies the effective-date basis and says the merchant needs the applicable OPC permit. This threshold is distinct from the federal criminal-rate definition.

• Quebec OPC — high-cost credit rules and permits

Use the official bank rate and date specified by OPC, not a lender’s variable prime rate or the mortgage rate from a news article. Ask the merchant whether the contract is high-cost credit and how it assessed the obligation. This page deliberately does not publish a changing numerical threshold without its dated reference.

A provincial high-cost classification creates additional requirements; it is not permission to exceed a federal restriction. Verify the merchant and the relevant permit through OPC’s official information, then check that the contact details match the organisation dealing with you. Registration does not guarantee a good price or your personal approval.

Fictional arithmetic, not a lawful-offer example: receiving C$500 and owing C$520 means C$20 in charges, or 4% of the money received for that particular period. It does not mean a 4% annual rate. You need the payment dates and every required charge before comparing annualised figures; do not certify legal compliance with this short calculation.

For a scheduled-payment illustration, C$2,000 received with twelve C$185 payments totals C$2,220. Adding a separately paid C$60 charge makes the outlay C$2,280 and the cost above the advance C$280. If the C$60 was already inside the payments, adding it again would be wrong. These fictional sums explain reconciliation, not a current product or a legal fee allowance.

Put the payments next to rent, utilities, food, transport and other debts. Check the balance on each due date and keep irregular bills visible. A loan priced below a legal threshold may still cause an unaffordable payment.

Before signing, ask what happens on early payment, missed payment and any proposed extension. Confirm the total, consent to optional products and the bank payment authorisation separately. Do not supply banking credentials or identification through a channel you have not verified.

For Quebec consumer-credit obligations, use OPC’s current guidance and complaint route. For a federally regulated institution, use the institution’s complaint process and FCAC’s consumer-rights information. Serious questions about a specific criminal-rate calculation need the full documents and appropriate legal assistance; the fact that an offer says 35% cannot settle them.

Does Quebec’s high-cost threshold replace the federal 35% rule?

No. They address different questions and definitions. Check the federal provisions, the Quebec classification and the actual product instead of treating one number as a complete permission to lend.

Can I compare a short-term fee with an annual percentage directly?

No. Record the advance, every charge and the payment dates first. A fee as a percentage of the advance for one period is not automatically an annual rate or proof of legal compliance.