Consumers have complained to the FCNB about these businesses reaching out to consumers who fell behind on their payments at work and are suggesting they will talk with their employer. According to FCNB Consumer Affairs Director Alaina Nicholson, lenders are calling people close to 50 times a day. She said it’s illegal for a payday loan lender to contact consumers at work or call their employer to get paid.
With the passage of the Cost of Credit Disclosure and Payday Loans Act, New Brunswick payday lenders be FCNB-licensed to offer their services in the area. Consumers who use licensed payday lenders are protected from the predatory lending practices including disclosure requirements, cancellation options and interest rate caps.
New Brunswick legislation has capped payday loans at $15 for every $100 borrowed – or 392 percent interest. Consumers must understand what they’re getting into it before they agree to take out a payday loan. Consumers are advised to look at the different financial short-term options before settling on a payday loan.
Some of the unlicensed lenders operating in the area include but are not limited to:
Consumers can reach out to the Financial and Consumer Services Commission to learn if a payday lender is licensed or not. They can also check out the FCNB to learn more about payday loan lenders as well as their responsibilities and rights.