Tories propose new rules for payday loans

The Nova Scotia government is introducing new rules to protect people who use payday loan services.

Payday lenders typically provide short-term, high-interest loans, usually a few hundred dollars for a few weeks.

The legislation would force lenders to disclose all fees, charges and interest rates, and post them prominently in the store.

If they don't comply, the loan would be interest free.

"There will be no hidden costs and no guesses," said Service Nova Scotia Minister Jamie Muir.

The bill also gives payday borrowers until 5 p.m. the next day to cancel a loan with no penalties, and prohibits the issuing of loans to pay interest on a previous loan.

The Nova ScotiaUtility and Review Board woulddetermine the maximum interest and fees payday lenders can charge.