New payday loan rules come into effect in N.B.

New Brunswick has introduced new rules for payday lenders that it says will ensure better protection for consumers.

The new rules set the maximum amount payday lenders can charge at $15 per $100 borrowed, including all charges and fees.

They also allow consumers to cancel a payday loan within 48 hours, without having to pay any charges, and make insurance on the loan optional.

Rick Hancox, CEO of the Financial and Consumer Services Commission, says New Brunswickers loan should have confidence that payday lending is well-regulated, and these new rules will help to strengthen that confidence.

"The new rules are similar to those across the country and offer better protection and information to those who feel the need to take out a payday loan," said Hancox in a statement.

As of Jan. 1, all payday lenders must also be licensed with the commission and could have their licence revoked if they are not following the rules.

They will also be required by law to display posters showing consumers the rates that they charge.

Payday lenders will not be allowed to offer consumers more than one loan at a time, rollover an existing loan, or give them a loan for more than 30 per cent of their net income.

Finance Minister Cathy Rogers has said the changes will ensure New Brunswickers are not taken advantage of at a time when they need financial support the most.

You can find more information about the rules on the commission's website.