Starting this week, payday lenders in New Brunswick are now required to follow new rules established by the Gallant government.
The Financial and Consumer Services Commission is responsible for enforcing the changes which are designed to protect consumers especially those who are
most vulnerable and in urgent need of financial help.
Payday lenders are not allowed to charge any more than $15 per $100 borrowed, including all fees.
If consumers change their minds about taking out payday loans, they now have 48 hours to cancel without worrying about any fees.
Some of the other changes which started January 1st will help consumers by:
-Requiring all payday lenders to be licensed with the commission.
-Allowing the commission to take action on unlicensed activity and against those not in compliance with the legislation.
-Requiring payday lenders to display posters showing the rates charged.
-Limiting payday lenders from issuing a consumer more than one loan at a time or extending or renewing a loan at an additional cost.
-Limiting payday lenders from giving consumers a loan for more than 30 per cent of their net pay.
-Making insurance on the loan optional.
For full details, click HERE
