Payday loans and your rights

Payday lenders operating in Nova Scotia must be licensed and comply with the rules set out in the Consumer Protection Act and the Payday Lenders Regulations. The law describes your rights with respect to obtaining and repaying payday loans.

The law allows payday lenders to tax a maximum of $ 19 on every $ 100 borrowed. The maximum charge for late payment is $ 40. Lenders can charge you up to 60% interest (annual interest rate if you pay late).

Payday loans are high-cost loans that are used to troubleshoot with a short-term cash advance. They must usually be repaid the next pay day.

Rates, fees and interest

Rates, fees and interest

Lenders charge different rates, but they do not all impose the maximum rate allowed. The lender might charge a different rate if you are able to repay the loan earlier.

If you can not afford to make the full refund on your next pay check, you may have to pay increased fees and interest.



The lender must post in his place of business a sign indicating the cost of a loan. The amount will be calculated on a $ 300 loan due after 14 days. The calculations must state the total amount to be repaid and the annual interest rate.

The lender can not charge you additional services (eg credit card, credit card, bank account or insurance) before granting you a loan.


Read your contract. Make sure the amount specified in the contract matches the amount you are requesting to borrow.

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