A payday lender is a credit grantor who offers, arranges or provides a payday loan. A payday loan is a loan of money:
- with a principal of no more than $1,500
- with a term that is no longer than 62 days
- that is made in exchange for a post-dated cheque, a pre-authorized debit or a future payment of a similar nature but not for any guarantee, suretyship, overdraft protection or security on property and not through a margin loan, pawnbroking, a line of credit or a credit card.
The Cost of Credit Disclosure and Payday Loans Act requires that any person offering, arranging or providing a payday loan must obtain a licence in New Brunswick from FCNB.
If offering, arranging and providing payday loans at more than one location, the applicant shall apply for a separate licence for each location. Also, each applicant will need to be licensed and pay the applicable licence fee for each office and/or website. Please note a licensee is not authorized to operate an office from a private dwelling. A licence is not transferable or assignable. A licence ceases to be valid one year after the day it is issued or, in the case of any renewal, on the next anniversary date of its issuance. A licence renewal application must be submitted at least 60 days before the expiry of the licence.
To apply for a licence to offer, arrange or provide payday loans, applicants must submit an application and meet the requirements under the Act and regulations.
It is the responsibility of the applicant to become familiar with the Act and the Rules and Regulations. Every applicant should exercise care in completing the application. Extra care will avoid delays which occur when applications must be returned because of incomplete answers or information. Applications for licence will not be processed unless all information and documentation is provided.
For full details about application requirements, documentation that must accompany your application and terms and conditions of maintaining a licence, review the Cost of Credit Disclosure and Payday Loans Act, and Rule PDL-001 Payday Loans Licensing and Ongoing Obligations.