5(1)For the purposes of subsection 37.37(1) of the Act, a payday lender may, in relation to a default by a borrower under a payday loan, charge, require or accept the payment of
(a)
a penalty calculated at a rate not exceeding 2.5% per month on the amount of the payday loan in default, and
(b)
a penalty not exceeding $20 for each dishonoured cheque or dishonoured pre-authorized debit.
5(2)The penalty referred to in paragraph (1)(a) is not to be compounded and may be charged, required or accepted only once in a 30-day period.
5(1)For the purposes of subsection 37.37(1) of the Act, a payday lender may, in relation to a default by a borrower under a payday loan, charge, require or accept the payment of
(a)
a penalty calculated at a rate not exceeding 2.5% per month on the amount of the payday loan in default, and
(b)
a penalty not exceeding $20 for each dishonoured cheque or dishonoured pre-authorized debit.
5(2)The penalty referred to in paragraph (1)(a) is not to be compounded and may be charged, required or accepted only once in a 30-day period.