The maximum amount a payday lender can charge on a loan and the fee for a dishonoured payment will be seeing some changes in the new year.
The Saskatchewan Government has announced the maximum cost of borrowing will be reduced from 23% of the loan amount to 17% of the loan amount. This means for every $100, borrowers can only be charged 17$ instead of 23$. This change matches British Columbia and Manitoba’s rules for payday loans.
Along with this, the fee for a dishonoured cheque or payment (also know as a non-sufficient funds fee) will be reduced from $50 to $25 and can still only be charged once per loan.
Payday loans are short-term loans of up to 62 days. The changes come into effect February 15, 2018.