FCAA is Saskatchewan’s financial and consumer marketplace regulator.
For information about your payday loan select from the options below.
A payday loan is a high cost, small, short term loan provided without security (no collateral) to a borrower. The loan must be no more than $1,500 and have a term of less than 62 days.
Be aware of the total annualized borrowing rate (ABR) of a loan before you agree to take the loan. The ABR calculation should include all of the lender’s fees or charges connected to the loan – interest charges and application, set up, administration or other fees. Even a high rate credit card’s APR will likely be significantly cheaper that the ABR calculated based on a $17 fee to borrow $100 for a payday loan term. For example, the ABR to borrow $100 at a $17 fee for one week is 866% per annum, which is significantly higher than a typical 28% per annum credit card.
Loans are payable on or after your next regular pay date. Loan agreements must be in writing, dated and signed by the borrower.
You should immediately receive and keep a copy of all payday loan agreements and associated documents, including pre-authorized debit agreements.
Payday loans are limited to half (50%) of your take-home pay and only one loan is allowed at a time. Lenders need a copy of your pay stub and/or bank statement showing evidence of your net pay prior to providing a loan.
Lenders providing payday loans to Saskatchewan residents must be licensed with FCAA. Do not borrow from unlicensed lenders.
Things to remember when using payday loans:
You may want to consider other less expensive options to borrow money, which can include:
Lenders are allowed to charge up to $17 for every $100 advanced, which means a payday loan of $300 can cost $351 ($300 x 17% = $51). By signing a pre-authorized debt agreement, $351 will come out of your bank account on your next payday.
This amount must include all fees whatsoever that may be directly or indirectly connected to your loan, including:
If you default on a payday loan, a payday lender may charge you:
You may only be charged one NSF charge per loan agreement, no matter how many of your cheques or pre-authorized debits were dishonoured.
You cannot be charged any other fees, penalties or costs by a payday lender for defaulting on a payday loan.
A lender cannot charge you additional fees to “rollover” or refinance your loan, or to extend your loan.
If you give a lender permission to get payment directly from your bank account by way of a pre-authorized debit (“PAD”):
The lender CANNOT make more than two attempts to access your bank account using a PAD to get payment for a loan.
Lenders must also follow collection practices as outlined in The Collection Agents Act.
This means (in part) that a lender attempting to collect past due amounts may not:
If debt is becoming overwhelming for you, it may be beneficial for you to seek some further assistance.
Credit counseling agencies that offer free or low-cost assistance include:
Credit Counselling Canada
401 Bay Street, Suite 1600
Toronto, ON M5H 2Y4
You have the right to certain information before signing any loan documentation. A lender must provide a separate pre-contract disclosure statement in writing that:
The Payday Loans Act of Saskatchewan applies to payday loans offered to persons in Saskatchewan. This means, in most cases, if you are in Saskatchewan when you obtain your payday loan, then the Act applies to your loan.
Generally, the Act applies to your payday loan where:
The Act will not apply to your payday loan if you are outside of Saskatchewan when you enter the payday loan.
Note: there are a few exceptions to the rules set out above. If you are unsure whether the Act applies to your payday loan, please contact our office for clarification.
Caution: just because the Act applies, doesn’t mean everyone is following it!
Ensure that the payday lender is licensed to operate in Saskatchewan before taking out a loan with the company. Licensed lenders must comply with the Act which protects borrowers in important ways. A list of licensed lenders can be found on our website.