New Brunswick Payday Loan Rules & Costs

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License

  • No person shall offer, arrange or provide a payday loan without a license.

Cost of a payday Loan

  • The maximum amount of a payday loan is 14 dollars for every hundred borrowed

If you borrowed $200 dollars it would cost $28 dollars and you would pay back $228

  • If the loan is not paid on time, overdue interest of 30% per year can be charged.
  • A fee of 20 dollars can be charged for an NSF(bounced payment).

Borrowing Rules

  • A Payday Loan cannot be more than $1,500 
  • A Payday Loan cannot be more than 62 days
  • A Payday Loan cannot be more than 30% of the borrowers net pay
  • No payday lender shall provide a second loan to a customer when one is still outstanding

Prohibited Practices

A Payday lender must not:

  • Require or request that the borrower insure a payday loan
  • Give another payday loan if you already have an outstanding loan with us
  • Ask for collateral as security for a payday loan
  • Require or accept an assignment of wages
  • Require or use a borrowers personal information for any purpose other than providing a payday loan
  • Additional fees:  A Payday lender cannot charge any fees other than the ones listed above under “Cost of a payday loan
  • Make a payday loan contingent on the supply of other goods or services

This rule means a payday lender can’t force you to buy something else or use another one of their services as a condition for getting a payday loan.

For example, they can’t say, “We’ll give you the $100 loan, but only if you also sign up for our monthly credit monitoring service.” Getting the loan has to be a separate decision from buying anything else they might offer.

  • Rollovers:  There are two types of rollovers and neither one is allowed

1) imagine you have a payday loan due. Instead of paying it back, you ask the lender to give you more time. But for that extra time, you are charged more fees on top of the overdue interest. 

2) Imagine you have a payday loan due.  You ask the payday lender to give you a second loan.  The lender agrees, but takes that money and uses it to pay off the first loan.