New regulations concerning the maximum amount allowed to be charged by payday loan companies in the province are now in effect.
The maximum total cost of borrowing from a payday loan company is now $14 for every $100 loaned – a significant drop from the maximum of $21 charged per $100.
Payday loans are for typically small amounts of money – less than $1500, with payment terms of less than 62 days. The loans are regulated under the Consumer Protection and Business Practices Act.
The amended Payday Loan Regulations have been published in the Newfoundland and Labrador Gazette.
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