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Payday Lender Compliance Requirements

The Cost of Credit Disclosure and Payday Loans Act protects consumers by ensuring that the true cost of borrowing is accurately disclosed to them. The disclosure must be clear in any contractual documents as well as in any advertising.

It is the responsibility of the payday lender to become familiar with the Act and the Rules and Regulations. For full details about compliance requirements including those regarding the payday loan agreement, cancellation rights, signage, and the mandatory education tool, review the Cost of Credit Disclosure and Payday Loans Act, Rule PDL-001 Payday Loans Licensing and Ongoing Obligations, and Regulation 2017-23 (Payday Lending Regulation – Cost of Credit Disclosure and Payday Loans Act).

Payday Loan Agreement

The payday loan agreement must be written in a clear and comprehensible manner, and signed and dated by the borrower. It must be provided to the borrower at the time the agreement is signed.

Cancellation rights

A cancellation form must be given to the borrower at the time the loan is extended.


A payday lender must prominently display at each of its physical locations where a payday loan is negotiated or entered into, signs in both official languages that are visible to borrowers immediately on entering any such locations. A payday lender must also ensure that signs are visible to borrowers at each place within that location where payday loans are negotiated or entered into.

Mandatory educational tool

Any payday lender licensed in New Brunswick must provide an educational tool that explains how the cost of taking out a payday loan compares to the cost of a cash advance from a credit card over time. This is to help borrowers with financial planning before they get a payday loan. Every borrower or person who shows interest in borrowing must receive a copy. Remote (e.g. online) lenders and brokers must provide borrowers the same information that’s in the flyer before discussing payday loans.