The Nova Scotia Legislature

The House resumed on:
September 21, 2017.

Bill No. 114

Consumer Protection Act (amended)

An Act to Amend Chapter 92 of the Revised Statutes, 1989, the Consumer Protection Act

Introduced by:
Honourable John MacDonell
Minister of Service Nova Scotia and Municipal Relations

First Reading
Second Reading Debates
Second Reading Passed
Law Amendments Committee
    Meeting Date(s) December 1, 2011; December 5, 2011
    Reported to the House
Committee of the Whole House
Third Reading Debates
Third Reading
Royal Assent
Commencement May 1, 2012
2011 Statutes, Chapter 55

Explanatory Note

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.

Clause 7

(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.