Bill No. 114
Consumer Protection Act (amended)
An Act to Amend Chapter 92 of the Revised Statutes, 1989, the Consumer Protection Act
Honourable John MacDonell
Minister of Service Nova Scotia and Municipal Relations
|First Reading||November 25, 2011|
|Second Reading Debates||November 28, 2011|
|Second Reading Passed||November 28, 2011|
|Law Amendments Committee||Submission Summary
|Meeting Date(s)||December 1, 2011; December 5, 2011|
|Reported to the House||December 6, 2011|
|Committee of the Whole House||December 8, 2011|
|Third Reading Debates|
|Third Reading||December 9, 2011|
|Royal Assent||December 15, 2011|
|Commencement||May 1, 2012|
|2011 Statutes, Chapter 55||View|
Clause 1 adds a definition of “Internet payday loan”.
Clause 2 prohibits a person from making an Internet payday loan without a permit.
Clause 3 provides that a person may apply for a permit to allow the person to
(a) make payday loans at a location specified in the permit; and
(b) make Internet payday loans from a website, if any, specified in the permit,
and provides for the pro-rating of the permit fee if the effective period of the permit is less than one year.
Clause 4 provides that permits expire on July 31st in each year.
Clause 5 prohibits the Registrar from issuing a permit if an application does not specify a location from which the applicant will make payday loans.
Clause 6 requires that the Registrar cancel, suspend or refuse to renew a permit if the permit holder fails or ceases to make payday loans from the location specified in the permit but does make Internet payday loans.
(a) prohibits a payday lender from making an Internet payday loan unless the design and maintenance of the payday lender’s website meets certain requirements;
(b) requires a payday lender to maintain the payday lender’s website in such a manner that a borrower can print a copy of the loan agreement at any time during the term of the Internet payday loan;
(c) requires a payday lender to ensure that a borrower has consented to a loan agreement before advancing money under an Internet payday loan, and to create a record of the borrower’s consent;
(d) requires that a payday lender provide the money being advanced under an Internet payday loan within an hour of entering into the loan agreement; and
(e) requires a payday lender to advance money in cash if requested to do so by a borrower, except in the case of an Internet payday loan.
Clause 8 provides that a payday lender cannot charge a fee for advancing money in cash.
Clause 9 requires a payday lender to display rates and fees for payday loans and other prescribed information
(a) at the location from which the payday lender makes payday loans; and
(b) on the website from which the payday lender makes Internet payday loans.
Clause 10 corrects an error and prevents a payday lender without a permit from recovering any more than the principal advanced under a payday loan.
Clause 11 allows a borrower to cancel an Internet payday loan within 48 hours following receipt of the initial advance.
Clause 12 requires a payday lender to retain documents in the manner and location prescribed in the regulations.
Clause 13 updates the regulation-making powers of the Governor in Council to authorize the making of regulations
(a) requiring applicants and payday lenders to provide prescribed information to the Registrar;
(b) prescribing information that applicants and payday lenders are required to provide to the Registrar, and the manner in which and the time within which such information must be provided;
(c) respecting Internet payday loans;
(d) respecting the display of prescribed information;
(e) prescribing information that a payday lender must display;
(f) respecting the manner and location in which records are to be maintained; and
(g) respecting advertising in relation to payday loans.
Clause 14 provides that this Act comes into force upon proclamation.