Service NL
March 6, 2019

Payday Loan Legislation Enhances Consumer Protection

On April 1, 2019, legislation to regulate the payday lending industry will come into effect, enabling the Provincial Government to provide enhanced protection for users of payday loans.

Regulations were published on Friday, March 1, in the Newfoundland and Labrador Gazette and include setting borrowing limits; increasing consumers’ awareness of their rights when entering into a payday loan agreement; and providing borrowers with remedies when payday lenders do not honour their responsibilities.

The new regulations also complement Bill 52, which made amendments to the Consumer Protection and Business Practices Act in December 2016.

Implementation of these regulations was dependent on the outcome of an application to the Federal Government for an exemption from Section 347 of the Criminal Code of Canada, which sets limits on the interest rates that can be charged to consumers, for which exemption was granted in December 2018.

The introduction of regulations for the payday loan industry delivers on commitments in The Way Forward to enhance consumer protection and deliver better outcomes for residents. The Way Forward outlines all actions the Provincial Government is taking to achieve a strong, diversified province with a high standard of living, and can be viewed at

“Payday loans provide a needed service for consumers who cannot avail of more traditional forms of credit from banks or credit unions. By ensuring lenders are operating responsibly and helping consumers understand the terms of their loan I am delivering on a commitment in my mandate letter.”
Honourable Sherry Gambin-Walsh
Minister of Service NL

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Learn more
Exemption Granted to Allow Provincial Government to Move Ahead with Payday Loan Legislation

Newfoundland and Labrador Gazette PDF icon

Provincial Government Introduces Legislation to Regulate Payday Loans

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Media contact
Krista Dalton
Service NL
729-4748, 685-6492

2019 03 06                              9:15 a.m.