I am in Ontario and a payday loan firm is threatening to sue me for a 200.00 loan 4 months overdue. I do not want my wages garnished they say I must pay 1500.00 now or be sued. I contacted them by email yesterday to attempt to resolve I will pay it back but what is the most I should have to pay and can they garnish? Thanks

Do you still have the contract you signed when you took out the loan? I'm guessing they are just following through because you didn't pay back the loan. (Pay-day loans are horrible ways to get cash. Don't do this again!)

You need to read what you signed, and why have you not contracted them in 4 months to work out payment plans, or have not paid them for 4 months.

It is common for the late and legal fees ( and they will keep getting more and more the longer it is late) but 1500 dollars on a 200 dollar loan is really not unheard of, and if they end up going to court, expect it to be even more. But only your contract will tell you how much they can charge.

Also many pay day loans, you actually sign a form to allow them to garnish your pay without a formal hearing, so look at what you signed.