Our member, Credit Counselling Services of Newfoundland and Labrador has long been advocating for payday loan regulations.
”We have been battling, for want of a better word, with this consumer practice for as long as it’s existed.” – Al Antle, CCSNL
In December 2016, the Newfoundland Government announced that payday loan regulations will be developed in consultation with key stakeholders over the next year. All regulations are expected to be in place by the end of 2017.
Newfoundland payday loan legislation will enable the 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.
“We’re dancing in the streets this morning with this regulation change. This is a very good thing for people.” – Al Antle, CCSNL
‘We’re dancing in the streets’ over payday loan changes, says credit counsellor
Enforcing regulations for payday loans will be difficult but it will keep people from spiralling into troublesome debt, says the head of Credit Counselling Services N.L.