Summary - The Payday Loans Act

The Payday Loans Act The Payday Loans Act establishes a framework for the regulation of payday lenders doing business in Saskatchewan. The Act includes consumer protection measures to address the issues of cancellation of loans, the high cost of the loans and the disclosure of fees and charges for payday loans. In particular, the legislation allows Regulations to set limits on the costs of payday loans. The Act is administered by the Financial Consumer Affairs Authority (FCAA) of Saskatchewan. The permitted rate that payday lenders can charge borrowers set out in the Regulations of the Act, is 17% of the principal amount as stipulated in the payday loan agreement. If a borrower defaults under a payday loan agreement, the payday lender may charge an interest rate of 30% per annum on the outstanding principal balance and a fee of $25 for a dishonoured cheque or pre-authorized debit. This fee can only be charged once per each payday loan agreement rather than per number of dishonoured cheques or pre-authorized debits accumulated. All persons who carry on business as a payday lender in Saskatchewan require a licence pursuant to the Act for each location from which they carry on business in Saskatchewan. This includes storefront premises in Saskatchewan and locations outside of Saskatchewan from which the person makes payday loans available to borrowers located in Saskatchewan through a website, email or fax. The licensing fee is $3000 for each license issued or renewed per location. Unlicensed lenders may be subject to regulatory enforcement actions and prosecution. For more information please see: Financial Consumer Affairs Authority of Saskatchewan (Payday Lenders)