SAINT JOHN, New Brunswick, Nov. 26, 2018 (GLOBE NEWSWIRE) – Unauthorized online payday lenders are targeting New Brunswickers, the Financial and Consumer Services Commission warns.
FCNB has received complaints from consumers about inappropriate collection practices from payday lending companies not licensed to operate in the province.
“We hear that these companies are reaching out to consumers who have fallen behind in their payments at their workplace and, in some cases, threaten to seek reimbursement from their employer. Sometimes they contact them up to 50 times a day, ”said Alaina Nicholson, director of consumer affairs at FCNB. “It is illegal for a payday lender in the province to contact you at your workplace or contact your employers or co-workers to collect a late payday loan. “
Since the implementation of the Cost of Credit and Payday Loans Disclosure Act New Brunswick payday lenders must be approved by FCNB on January 1.
Using approved lenders helps protect consumers from abusive lending practices. Some of these protections include: interest rate caps, disclosure requirements, and cancellation options.
Payday loans are high cost loans. New Brunswick law caps the cost of a payday loan at $ 15 per $ 100 borrowed, which equates to 392% interest. Consumers should understand the cost of borrowing before accepting a payday loan. It is also important for them to consider all the options available to find the right solution for their short-term borrowing situation.
Consumers are cautioned that some of the online businesses that offer payday loans are not licensed in New Brunswick (and some are not licensed in any Canadian province). These companies include:
- fastpayment loan.ca
Consumers can check if a payday lender is licensed by contacting the Financial and Consumer Services Commission. FCNB also has resources on its website to help consumers educate themselves about the importance of using licensed payday lenders, as well as to help them understand their rights and responsibilities when using a lender on their website. salary.
Sara Wilson, Senior Communications Officer, 506 643-7045 or 1 866 933-2222. firstname.lastname@example.org
FCNB has a mandate to protect consumers and increase public confidence in the financial and consumer marketplace through the provision of regulatory and educational services. He is responsible for the administration and enforcement of provincial legislation governing mortgage brokers, payday lenders, real estate, securities, insurance, pensions, credit unions, trust companies. and lending, cooperatives and a wide range of other consumer laws. It is an independent Crown corporation funded by regulatory fees and contributions paid by regulated sectors. Online educational tools and resources are available at www.fcnb.ca.