Payday Lender Permit
Apply for a Payday Lender Permit. Payday lenders need the permit to do business in Nova Scotia. A payday lender is someone who offers, arranges or provides loans under $1,500 with a term of 62 days or less to consumers in Nova Scotia.
By law, payday lenders must have a Payday Lender Permit to offer, arrange or provide payday loans to consumers in Nova Scotia. Your facility will be inspected before you get the permit.
A payday loan includes any loan of $1,500 or less, made for a term of 62 days or less, in exchange for a postdated cheque, pre-authorized debit or similar future payment.
If a person is found guilty of an offence under the Consumer Protection Act, they can be fined up to $25,000 or go to prison for up to a year or both. If a company is found guilty, it can be fined up to $300,000.
If you offer, arrange or provide loans under $1,500 with a loan term of 62 days or less you need to apply for a permit. You also need to have a permanent retail place of business in Nova Scotia.
If you provide payday loans online you need to apply for a permit. You also need to have a permanent retail place of business in Nova Scotia.
You need to apply separately for each business location (each location needs a separate permit).
How to apply
- Complete the application form.
- Check the application for details on all required supporting documents.
- Include payment with your application.
- Send your completed application, supporting documents and payment by mail or fax.
- A Service Nova Scotia inspector will inspect your facility.
How long it takes
It should take 2 weeks to get the permit. It can take longer if more information is needed or if your application hasn’t been filled in correctly. Application will not be approved until a pre-licensing inspection of the facility is completed.
Visa, MasterCard, American Express, cheque, money order. A cheque or money order should be made payable to the Minister of Finance. Payment options may vary depending on how you apply.
Before you start
Make sure you have:
- permanent place of business or retail storefront location in Nova Scotia
- Registry of Joint Stock Companies number
- 3-year employment history for you and any partners and officers
- address and manager’s name for all branches
You also need to provide details if you or any partner, officer or director has:
- been previously licensed under any provincial or federal statute
- had a licence refused, suspended, or revoked
- been involved in a personal or corporate bankruptcy
- unpaid judgments outstanding
- been convicted of an offence and not been pardoned
You need to provide additional supporting documents including:
- sample loan agreement
- sample form for written cancellation
- sample form of receipt for amount paid by the borrower to be returned to the lender
- sample of interior poster or signage
- sample of exterior signage
You need to renew your Payday Lender Permit by July 31 each year. You should get a renewal package in the mail before the renewal date. It’s your responsibility to renew on time.