High-cost credit lenders will soon have to be licensed in NL

    Wednesday, 10 January 2024 07:00

    By Tonya Organ

    To better protect borrowers who take out high-cost loans, high-cost credit lenders will be required to comply with legislation, making NL the first Atlantic Province to implement a regulatory regime specific to high-cost credit lenders.

    Effective June 1st high-cost credit lenders must be licensed to operate in this province. These lenders are distinct from banks, credit unions and payday lenders, and offer installment loans at high interest rates. The cost of borrowing may include additional fees and compounding interest. To better protect borrowers who take out high-cost loans, high-cost credit lenders will be required to comply with legislation, making NL the first Atlantic Province to implement a regulatory regime specific to high-cost credit lenders.

     

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