Pay­day loan laws to be en­acted in N.L. in new year

The Gulf News (Port aux Basques) - - News - Tele­[email protected]­

The pay­day lend­ing in­dus­try will soon be reg­u­lated in this prov­ince.

It’s a process two years in the mak­ing.

In De­cem­ber 2016, the prov­ince passed leg­is­la­tion to pro­tect con­sumers who use pay­day lend­ing ser­vices, and also in­crease aware­ness of their pay­day loan agree­ment rights.

How­ever, the prov­ince couldn’t pro­claim it law un­til the fed­eral gov­ern­ment al­lowed an ex­emp­tion of a sec­tion of the Criminal Code. The spe­cific sec­tion deals with the criminal in­ter­est rate pro­vi­sion as it re­lates to pay­day loan agree­ments.

That ex­emp­tion was pub­lished in the Canada Gazette on Wed­nes­day.

With the grant­ing of the ex­emp­tion, the gov­ern­ment will now pub­lish the as­so­ci­ated reg­u­la­tions and pro­claim the leg­is­la­tion into law early in the new year.

“En­hanced con­sumer protection has been a strong fo­cus for our gov­ern­ment, and adding protection for those who use pay­day lenders is a sig­nif­i­cant step,” Ser­vice NL Min­is­ter Sherry Gam­bin-Walsh stated in a news re­lease.

The new law will al­low the pro­vin­cial gov­ern­ment to pro­vide the fol­low­ing pro­tec­tions for users of pay­day loans:

Lim­it­ing the to­tal cost of bor­row­ing for pay­day loans;

Re­quir­ing pay­day loan agree­ments to in­clude spec­i­fied terms, in­for­ma­tion and dis­clo­sure state­ments;

Can­cel­la­tion rights dur­ing a cool­ing-off pe­riod;

Pro­hibit­ing cer­tain pay­day lender prac­tices; and

Pro­vid­ing bor­row­ers with reme­dies when pay­day lenders do not hon­our their re­spon­si­bil­i­ties un­der this leg­is­la­tion.

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