N.S. Payday Loans Under Microscope

The Nova Scotia Utility and Review Board is taking another look at the way payday loan companies do business and will examine the issue at hearings scheduled to begin Monday in Halifax.

The board will determine whether the companies are charging too much to borrow money. In Nova Scotia, they can charge up to $31 for every $100 borrowed — the highest rate in the country.

The UARB set the 31 per cent lending rate — which includes interest and fees — two years ago. It also capped the default penalty at $40 and limited the interest rate on any outstanding balance to 60 per cent.

A payday loan is a short-term loan that people promise to pay back using their next paycheque. The amount borrowed is usually limited to about 30 per cent of take-home pay.  Read More…

This article has 7 Comments

  1. Joban C.

    People still use these kinds of services?

  2. Zackary T.

    I’m in the wrong business. lol!

  3. Terrence D

    Wow and i thought credit card rates were high!

  4. Zackary

    @Sherly there are situations were not being able to go to a bank is not possible. Such as needing the money right now while banks may require a certain # of business days before the cash is made available.

  5. Sherly

    Why use this kind of loan shark approach when one can just go cash in their money at their local bank? Maybe i am missing something.

  6. Jagger G.

    Sure these fees are outrageous but it is nothing like the U.S. which has no set limits at all.

    The sky’s the limit.

  7. Yancey V.

    These fees are definitely out of hand. Here in NS it is even more out of control than what this article suggests. I’ve written something about it in our local paper and will be happy to share it if anyone is interested.

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