Province tightens rules on payday loans and cheque-cashing fees

Photo courtesy CBC.

The province is providing security to users of payday lending and credit providers by limiting fees and other measures announced Monday.

Payday-loan protections will see a maximum fee of $15 for every $100 borrowed, a drop in the fee of two dollars which now matches the lowest rate in Canada.

Borrowers also have two business days to cancel a loan request without a penalty and lenders are prohibited from the use or disclosure of personal information of a client for anything other than arranging or providing a loan.

The NDP government is capping the fee for cashing a provincial social assistance or disability cheque at two dollars, plus one per cent of the value of a cheque to a maximum of $10.

That applies to anyone in the province who cashes cheques.

The government has launched a new website for advice and information on borrowing money before taking out a loan.

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