yes i read about that and I think who use these services get ALL information up front and understand fully what fees, charges, and risks are involved.

New rules for payday lenders in Nova Scotia come into effect next month.

Maximum rates and fees set one year ago by the Nova Scotia Utility and Review Board will be enforced as of Aug. 1, the government announced Tuesday.

Regulations mean payday lenders cannot charge more than $31 per $100 borrowed. which includes all non-optional fees tied to loan. Default fees cannot exceed $40 per loan; and the interest rate on loans in default cannot exceed 60 per cent annually.

Payday loan rates in Nova Scotia range from about $15 to $35 per $100, according to evidence submitted to the regulatory board.

Practices such as automatic loan rollovers and setting the loan due date prior to the consumer’s next payday are also banned.

Payday lenders will be provincially licensed under the new rules and have to submit annual reports to the province.

The Utility and Review Board is due to carry out a review of the regulations in 2010.