Are Payday Loans Available In Nova Scotia?
Yes, payday loans are available in Nova Scotia. These loans are typically high-cost, short-term cash advances that are due for repayment in one lump sum by your next paycheque. In Nova Scotia, you have up to 62 days to repay your payday loan.
Payday lenders in Nova Scotia must have a current license to operate their business. They are also regulated by the Consumer Protection Act and Payday Lenders Regulations in the province.
Licensed Payday Lenders in Nova Scotia
It’s important to work with a payday lender that’s licensed in Nova Scotia. Licensed lenders must comply with strict regulations regarding interest rates, fees, and collection practices, which ensures that you’re treated fairly.
To find a licensed payday lender in Nova Scotia, you can check lenders’ storefront or website to see if their license is clearly advertised. Alternatively, you can search the provincial government’s website, which provides a database of licensed payday lenders in Nova Scotia.
To help you begin your search, here is a list of licensed payday lenders, some of which are available in person, and others that provide online-only payday loans:
Your Rights As A Payday Loan Borrower In Nova Scotia
In Nova Scotia, payday loan borrowers have many rights under the Consumer Protection Act and the Payday Loans Regulation, as mentioned. Before you apply for a payday loan, get familiar with the following:
| Loan Amounts | Up to $1,500 |
| Loan Terms | No longer than 62 days |
| Cost Limits | Maximum fee of $14 per $100 borrowed |
| Cooling-Off Period | 48 hours |
| Rollovers | – Not allowed |
| Disclosures | – Cost of borrowing must be clearly displayed in the place of business – Total amount owed, including interest and all fees in loan agreement – Licensing must be clearly displayed |
| Lender Licensing | All payday lenders in Nova Scotia must be licensed in the province |
| Default Charges | – Interest up to 30% for late payments – Maximum late fee charge of $20 |
Do Payday Lenders In Nova Scotia Require Good Credit?
No, payday lenders in Nova Scotia don’t typically require a good credit score. In fact, they usually don’t conduct a credit check at all when you apply for a payday loan. Instead, payday lenders may ask for the following:
- Proof of income
- A bank account
- Identification
This makes payday loans much more easily accessible to those with poor credit or no credit history.
Can You Get An E-Transfer Payday Loan In Nova Scotia?
Yes, you can get an e-transfer payday loan in Nova Scotia. Many lenders provide borrowed funds via Interac e-transfer, which allows you to get your money quickly, conveniently, and securely.
Depending on the lender, you may receive the funds within minutes after loan approval, making this a great option if you’re in urgent need of extra cash.
Learn more: Best No Credit Check Loans
How Much Will Your Payday Loan Cost You?
Before you take out a payday loan, you should understand the exact amount it will cost you, including all interest and fees. As noted earlier, the most a payday lender in Nova Scotia can charge is $14 per $100 borrowed.
To help you get a sense of how much you can expect to pay for a payday loan in Nova Scotia, here are a few loan amounts, their respective fees and rates, and the total amount for each:
| Loan Amount | Cost To Borrow | Total Loan Cost |
| $100 | $14 | $114 |
| $200 | $28 | $228 |
| $300 | $42 | $342 |
| $400 | $56 | $456 |
| $500 | $70 | $570 |
| $1,000 | $140 | $1,140 |
| $1,500 | $210 | $1,710 |
What Happens If You Miss A Payday Loan Payment In Nova Scotia?
If you miss a payday loan payment in Nova Scotia, several things can happen. That said, payday lenders in Nova Scotia must adhere to regulations in the province that limit what lenders can do in the event of loan default.
| Maximum Penalty Fees | -Up to 30% of the default amount per year -Up to 2.5% per month on the overdue amount beginning the day after the loan due date |
| Maximum NSF Fees | Up to $20 for a late payment |
| Collections Actions | Lenders may contact you to request payment via phone calls, emails, letters, or in-person visits. However, they must not: – Harass you or your family – Contact you before 7am or after 9pm – Contact you outside business hours or on weekends/holidays – Threaten to repossess your assets without authority – Mislead you with falsified court documents |
How To File A Complaint Against A Lender In Nova Scotia
As noted, payday lenders in Nova Scotia have rules to follow when dealing with borrowers. If you believe that your rights are being violated, you can file a complaint with the Consumer Protection Office in the province. Your complaint must be in writing and include as much relevant information as possible.
| By Mail | Public Enquiries – Service Nova Scotia PO Box 2734 Halifax, NS B3J 3K5 |
| By Phone | 902-424-5200 1-800-670-4357 |
| By Email | askus@novascotia.ca |
| By Online Form | Submit this form online |
Alternatives To Payday Loans In Nova Scotia
Payday loans are risky. If you’re in need of financial assistance but want to avoid the potential risks that come with payday loans, consider the following alternatives:
Government Assistance Programs In Nova Scotia
You may qualify for various provincial government programs if you’re struggling financially:
| Income Assistance | Learn More |
| Heating Assistance Rebate Program | Learn More |
| Nova Scotia Child Benefit | Learn More |
| Disability Support Program | Learn More |
| Affordable Living Tax Credit | Learn More |
Debt Relief
If your financial situation is too difficult for you to clear on your own, you may seek debt relief solutions. Keep in mind that some options may have a detrimental effect on your credit score:
| Program | Description |
| Debt Consolidation Loans | These loans combine several debts into a single monthly payment, typically with a lower rate. |
| Credit Counselling | Credit counsellors can help you create a budget, negotiate with creditors, and provide financial guidance. |
| Debt Settlement | A debt settlement company will negotiate with your creditors to settle your outstanding balances for less than what you owe. Your credit score will be negatively affected. |
| Consumer Proposals | This is a formal offer to your creditors to settle your unsecured debts. Your credit score will take a hit. |
| Bankruptcy | This is a legal process that can help you discharge your debts. You may need to surrender your assets (with exceptions), and your credit score will be significantly affected. |
Other Ways To Get Quick Cash In Nova Scotia
If your financial struggles are temporary and you’re still able to cover small loan repayments, consider the following options:
- Credit Card Cash Advances – If you have a credit card, you can get a cash advance, but be aware of high rates.
- Car Title Loans – This is a short-term, high-interest loan where you use your car as collateral. The lender holds the car title until you repay the loan.
- Personal Loans – You can apply for a personal loan from a bank or online lender, depending on your credit score.
- Small Advances & Credit Lines – These companies provide small cash advances and credit lines:
