Public Advisory: Payday Loan Borrowing Rate Lowered

  • Digital Government and Service NL

December 15, 2022

Effective today, Thursday, December 15, 2022, the maximum total cost of borrowing by a payday lender has been lowered from $21 per $100 loaned, to $14 per $100 loaned, making Newfoundland and Labrador’s cost of borrowing the lowest in Canada.

Payday loans are for small amounts of less than $1,500, with payment terms under 62 days. Payday loans are regulated in Newfoundland and Labrador through the Payday Loans Regulations, which came into effect in April 2019, under the Consumer Protection and Business Practices Act.

Changes to the regulations, decreasing the borrowing rate, were published in the Newfoundland and Labrador Gazette in September 2022. The amended regulations are available online.

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2022 12 15 1:40 pm