Criminal interest rate, as defined in section 347 of the Criminal Code, occurs when an individual enters into an agreement or arrangement to receive interest at a criminal rate or receives a payment or partial interest payment at a criminal rate. “Criminal rate” means an effective annual rate of interest calculated in accordance with generally accepted actuarial practices and principles that exceeds sixty percent on credit advanced under an agreement or arrangement.

Criminal interest rate is a hybrid offence. This means that the Crown can choose to proceed with the charge either by indictment or by summary conviction. If convicted of an indictable offence, you will face more severe penalties than if sentenced for a summary conviction.