HALIFAX - The payday loan industry will be subject to new regulations in Nova Scotia effective Aug. 1.
The government says the regulations aim to protect consumers and help them understand their rights and obligations as borrowers.
The regulations cap rates and fees at levels set by the Utility and Review Board in 2008.
They include a maximum interest rate of 60 per cent per annum, a maximum flat-rate default fee of $40, and a total cost of borrowing that must not exceed $31 per $100.
As well, practices such as automatic loan rollovers and setting the loan due date prior to the customer's next payday will be prohibited.
Payday lenders must also provide complete disclosure to clients about costs and fees before they provide their personal information.
