Nova Scotia regulator recommends rules for online payday loan companies

<p>HALIFAX – A Nova Scotia regulator is recommending that online payday loan companies be governed by the same rules as so-called brick and mortar operations.</p> <p>The Utility and Review Board released a report today that says Internet lenders should be licensed and have a registered office in the province.</p> <p>The board is also recommending that, as with walk-in businesses, online companies provide borrowers with clear cost information and easy access to copies of loan agreement forms.</p> <p>The board says that while online companies in other provinces are reluctant to offer Nova Scotians loans without the necessary licensing approval, there are those in foreign jurisdictions that do – but without consumer protections.</p> <p>Earlier this year, the board set the maximum cost of borrowing from payday loan companies at $25 per $100 borrowed, down from the $31 figure set in 2008.</p> <p>The board said it did not draft regulations for online lending, leaving the content of any new guidelines to the discretion of the provincial cabinet.</p>