A criminal rate of interest

Millions of consumers subscribe to utilities and telecommunications services on a monthly billing schedule. If consumers miss a payment due date, the service likely charges late payment interest and may apply a late payment penalty fee or charge a processing fee for accounts that have late payments. Beginning with the notable case of Garland v. Consumers' Gas before the Supreme Court of Canada in 1998, courts determined that the definition of "interest" is broad and a late payment penalty could be construed as an "interest" charge on an advancement of credit because a deferral of payment constitutes an advancement of payment under s. 347. It has been over ten years since the Supreme Court's decision in Garland. Since that decision, there have been more attempts to apply a broad interpretation of "interest" to charges arising from late payment penalty charges.