NEWFOUNDLAND AND LABRADOR REGULATION 11/19

Short title

1. These regulations may be cited as the Payday Loans Licensing Regulations.

Interpretation

2. The definitions in section 2 and Parts VII.1 and VIII of the Act apply for the purpose of these regulations.

Display of licence

3. (1) A payday lender shall prominently display a copy of the payday loan business licence in each location to which the licence pertains.

(2) The director shall provide a payday lender with a copy of the licence for each location to which the licence pertains.

(3) Where a payday lender engages in the payday loan business by means of the internet, the payday lender shall display a copy of the licence prominently at or near the top of the introductory page of the website for borrowers of the province.

(4) A payday lender shall include the licence number in all representations and advertisements.

Name on licence

4. A payday lender shall not engage in the payday loan business in the province under a business name or trade name that differs from the name on the licence.

Requirements for licence

5. An applicant for a payday loan business licence shall submit to the director:

(a) a copy of each of the following documents:

(i) the standard payday loan agreement,

(ii) a sample payday loan agreement for $300 for 14 days, showing all fees and charges,

(iii) the rate structure for a payday loan, including interest and permissible fees and charges,

(iv) the cancellation notice form,

(v) the receipt for a payday loan cancellation required under subsection 83.5(4) of the Act,

(vi) the receipt for payments made by the borrower required under section 83.7 of the Act,

(vii) the receipt for the return of a cash card under subsection 83.8(3) of the Act,

(viii) a copy of the signs required under the Payday Loans Regulations; and

(b) other information or documents required by the director.

Notification required

6. (1) In addition to the notification requirements under section 92 of the Act, the holder of a payday loan business licence shall notify the director in writing with respect to a change in

(a) the information or documents provided to the director under section 5; or

(b) the addresses of the locations to which the payday loan business licence applies,

within 15 days of the change.

(2) Where a payday lender amends a document that was submitted to the director under section 5, the payday lender shall submit a copy of the amended document to the director within 15 days of the change.

(3) Notwithstanding subsection (1), where a payday lender who holds a licence intends to engage in the payday loan business at an additional location, the notice referred to in subsection (1) shall be provided to the director before engaging in the business at the new location.

Creation of records

7. A payday lender shall create and maintain records relating to the payday lender's collection activities with respect to each payday loan, including logs of telephone calls and other records of contact.

Use of information

8. A payday lender shall ensure that applications for payday loans, payday loan agreements and other documents in respect of payday loans

(a) are used only for the purpose of providing, administering or collecting payday loans; and

(b) are not used in connection with the provision of goods or services.

Retention of documents

9. (1) A payday lender shall retain payday loan agreements, receipts and other documents in respect of a payday loan, including logs of telephone calls, records of contact, notes and other records relating to collection activities, for a period of 6 years after the date on which the payday loan is fully repaid.

(2) Where a payday loan is not repaid, a payday lender shall retain the documents referred to in subsection (1) in respect of the payday loan for a period of 6 years after the date of the last payment or written acknowledgement by the borrower.

(3) A payday lender may retain the documents referred to in subsection (1) in an electronic format.

(4) Where the 6 year time period referred to in subsection (1) or (2) has expired, the payday lender shall destroy the documents referred to in subsection (1) in a manner that will prevent unauthorized persons from gaining access to the documents.

Commencement

10. These regulations shall come into force on the day that An Act to Amend the Consumer Protection and Business Practices Act, SNL2016 c46, comes into force.