Regulation of Payday Lenders
Payday lenders are regulated by the Consumer Protection Act and Payday Lenders Regulations. In addition, the NS Utility and Review Board has the jurisdiction to set the maximum cost of borrowing from payday lenders.
Payday lenders are permitted to offer their services over the internet in Nova Scotia.
Following the NSUARB’s most recent payday lender decision the maximum cost of taking out a payday loan is $22.00 for every $100.00 borrowed. There is also a $40.00 penalty for missed payments.
Payday lenders are required by law to display a sign at their business, or on their website, which shows the total cost of borrowing $300.00 for 14 days.
Payday loans can be cancelled without penalty by the end of the business day following the day in which the loan was taken out, or within 48 hours if the loan was advanced from an Internet payday lender. Payday lenders are required to provide borrowers with a cancellation form at the time they take out their loan.
In order to operate in Nova Scotia payday lenders must be licensed pursuant to the Consumer Protection Act. A list of licensed payday lenders can be found here: