Unlicensed Payday Lenders

Payday lenders operating in Nova Scotia must be licensed and follow the rules set out in Consumer Protection Act, Payday Lenders Regulations. and Consumer Creditors’ Conduct Act.

However, internet payday lending has become more common and not all lenders are licensed. We’ve collected some information to help you feel comfortable about your rights:

How do I know if a payday lender is licensed in Nova Scotia?

• All licensed payday lenders are listed on our Open Data web portal. Available information includes the lender’s registered business name and their location. If the payday lender is not listed, they are not a licensed payday lender in Nova Scotia.
• You can check if a payday lender is licensed to do business in Nova Scotia under “Related information” at www.novascotia.ca/payday-loans-your-rights.
• Licensed online payday lenders are required to prominently post their Nova Scotia license number and expiry date on the introduction page of their websites.

You borrowed from an unlicensed payday lender — now what?

• You may cancel a payday loan agreement from a storefront lender for up to one business day afterward. You may cancel an online payday loan within 48 hours after you are able to access the money.
• There is no penalty for cancelling a payday loan within the cooling-off period, and you do not have to give a reason for cancelling.
• If you choose to cancel, you need to notify the lender in writing and return any outstanding balance of the initial loan. Keep a record of your cancellation and any payments you make.
• A collector may not imply false negative credit impacts or unjustified legal action.
• A payday lender or debt collector cannot harass you or people you know.

What is harassment?

The law does not allow harassment of consumers when collecting debt. Some things that could be harassment include:

• Threatening, abusing, or intimidating a borrower, their family, or acquaintances.
• Making excessive or frequent calls or written communications to a borrower or their place of employment.
• Making public or threatening to make public a borrower’s failure to pay the debt.

What can you do if you feel harassed by a lender or debt collector?

• Take careful notes — record what was said, by whom, and the date and time conversations take place.
• Report threats or other unlawful behaviour to Service Nova Scotia and Internal Services and the Canadian Anti-Fraud Centre at 1–888–495–8501.