SAINT JOHN (GNB) – New regulations to protect New Brunswick consumers who take out payday loans came into force on 1 January.
The maximum amount that payday lenders can now charge is $ 15 per $ 100 loan tranche, including all fees and fees. This amount is among the lowest in Canada. Under the new regulations, consumers can also change their minds and terminate a payday loan within 48 hours without being charged.
“The new regulations are similar to those in place across the country, and they provide better protection and information to those who feel the need to take out a payday loan,” said the CEO of the Services Commission. Financial Services and Consumer Services, Rick Hondy. “We want New Brunswickers to be assured that the payday loan is well regulated. These new regulations help to strengthen this insurance. “
The commission is responsible for the application of the new law and its regulations, which support consumers by:
- requiring all payday lenders to hold a license issued by the commission;
- allowing the commission to take action against companies that engage in activities without a license or that do not comply with the legislation;
- requiring payday lenders to report their interest rates on posters;
- preventing payday lenders from granting more than one loan at a time to a consumer or extending or renewing a loan for an additional cost;
- preventing payday lenders from granting consumers loans that represent more than 30 per cent of their net pay; and
- by making the loan insurance optional.
Consumers can visit the commission’s website for information on new regulations, payday loan issues, and how to make informed credit decisions.
Infographic documents on payday loans:
- What are the rules for payday loans?
- Can a payday lender do that?
- How does a payday loan work?
- How much does a payday loan cost?
The Financial and Consumer Services Commission is mandated to protect consumers and increase public confidence in the financial services and consumer services markets by providing educational and regulatory services. It is responsible for the administration and enforcement of provincial securities, insurance, pension, credit union, loan and trust corporation, cooperative and a variety of legislative measures. affecting consumption. It is an independent Crown corporation funded by the fees and regulatory fees paid by regulated industry stakeholders. Resources and informative tools are available online.