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…