Service NL
April 1, 2019

Payday Loan Legislation Now in Effect

Legislation to regulate the payday lending industry comes into effect today, which will better protect users of payday loans in Newfoundland and Labrador.

Payday loans provide a needed service for consumers who cannot avail of more traditional forms of credit from banks or credit unions. In keeping with the Provincial Government’s focus on measures to enhance consumer protection, it was important to introduce legislation to ensure lenders are operating responsibly and help consumers understand the terms of their loans.

The new legislation caps the total cost of borrowing for payday loans to a maximum of $21 per $100 borrowed. This rate is within the range currently in place in other provinces that regulate payday loans, and will protect borrowers from excessively high interest rates. There is also a requirement for payday loan agreements to include specified terms, information and disclosure statements, and provide borrowers with remedies when payday lenders do not honour their obligations.

The new regulations allow for a 48-hour cooling-off period. If a consumer decides to change their mind, the loan can be cancelled within 48 hours with no questions asked.

This initiative delivers on commitments in The Way Forward to deliver better services and 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

“Our government has introduced a number of measures regarding consumer protection in Newfoundland and Labrador. Legislation to regulate the payday loan industry further delivers on commitments in The Way Forward to support consumers and families.”
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
Melony O’Neill
Service NL
729-4860, 689-0928

2019 04 01                              10:25 a.m.