Nova Scotia


In Nova Scotia, payday lenders are permitted by law to charge $19 per $100 borrowed. The Nova Scotia rate is the equivalent of 600% annual percentage rate. However, it is illegal for payday lenders to charge more than 19% interest for any payday loan. Nova Scotia’s regulations for payday loans came into effect in June, 2009. There have been two rounds of legislation, with the first establishing theses rules:

  • 31% interest
  • One loan at a time
  • No rollovers
  • During a two day grace period, loans may be canceled without a fee.
  • Transparency in the disclosure of fees

Second round of legislation:

  • Maximum interest reduced to 25%
  • Regulation of online payday loan

In 2018, the Nova Scotia Utility and Review Board reduced the interest from 25% to 22%. A new regulation took effect in February 2019, a reduction in the benchmark charge from 22% to 19% per $100 borrowed. The maximum amount that can be loaned, $1500 or the $40 default fee and 60% interest on arrears did not change.

Data about the Payday Loan Industry in Nova Scotia (2012 – 2014)

  • $89,276,435 was the total loan volume in 2014
  • From 2012 to 2014, the percentage change in loan volume is 16%
  • $95.26 is the average cost of credit
  • The average loan size is $433
  • The average debt in Nova Scotia is $23,149
  • Most lenders are in compliance with the provincial fee disclosure requirements

In most part of Canada, Nova Scotia included, have been imposing new rules to stop lenders from using predatory tactics. Some of the rules in Nova Scotia include:

  • An approved business license by the provincial government
  • Loan costs, interest rates, and other requirements must be displayed on every loan contract
  • Borrowers are legally entitled to a refund if a lender charges them for an early payment.


Lenders operating in Manitoba include:

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