Government of Saskatchewan
Thursday, December 05, 2019
Financial and Consumer Affairs Authority

payday loan

Who needs money?

Borrowing money from a payday loan lender is an expensive way to get money.

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.

If you borrow $300 from a payday lender 5 times throughout the year, you will have paid a total of $255 ($51 x 5) in fees and interest costs. Make sure it’s worth it!


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.

Loans are payable on or after the next regular pay date. Loan agreements must be in writing, dated and signed by the borrower.

Borrowers should immediately receive and keep a copy of all payday loan agreements and associated documents, including pre-authorized debit agreements.

If the borrower defaults on a payday loan, a payday lender may charge:
• default interest, up to a maximum of 30% per annum, on the loan principal amount in default; and
• one NSF charge, up to a maximum of $25, if a cheque or pre-authorized debit was dishonoured.

Payday lenders can only enter into one pre-authorized debit (PAD) agreement with a borrower with respect to a payday loan. If the first attempt for the PAD is dishonoured, the payday lender can only retry the PAD one more time after which the lender needs to obtain repayment through another method such as cheque, direct debit or email money transfer. The additional PAD retry must be made within 30 days after the payday lender received notice that the initial attempt was not successful. Also, the payday lender may only charge the borrower one NSF charge per loan agreement, no matter how many cheques or pre-authorized debits were dishonoured. Your financial institution may also charge additional NSF fees.

Things to remember when using payday loans:

1) Know the costs – frequent use adds up over time.
2) Don’t take out a second payday loan to pay off the first one.
3) If you change your mind, you have until the end of the next business day to return the money and cancel the loan.
4) Read the fine print.
5) Loans are due on your next regular payday.
6) Use a licensed Saskatchewan lender

If you have questions or concerns, contact the Consumer Credit Division at 306-787-6700 or email

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