By Info FCNB–July 2, 2026–4 min read
When money is tight, it can feel like a struggle to cover all your needs. Rising prices and sudden bills, or a gap between paycheques can make it harder to pay for everyday things. If you’re feeling stressed or out of options, you’re not alone. When faced with hard spending choices, many people search online for payday loans to cover bills until the next paycheque arrives. If you’re in that situation, you’re not alone. It can help to take time to understand the full cost, see what protections apply and where risks can show up.
A payday loan is a short‑term loan, usually meant to cover expenses until your next paycheque. These loans are often easy to access and feel like a quick solution, but they are also one of the most expensive ways to borrow money. Because payday loans are costly, some people find them harder to repay than expected, and they need to borrow again just to keep up. Before you take out a payday loan, understanding the full cost and the rules that apply can help you make sense of what you’re being offered.
In New Brunswick, anyone offering payday loans must have a licence from the Financial and Consumer Services Commission, whether they are online or in person.
Licensing matters because when a lender is licensed, there are limits on interest rates and fees, requirements for clear information, and rules about how lenders can collect payment. When a lender is not licensed, fewer protections are in place, and you may have a higher chance of being scammed.
Unlicensed payday lenders are risky. You might not know who they are, where they are located or how to get help if something goes wrong. This matters because when a lender isn’t licensed, people may be exposed to practices that are not allowed under New Brunswick’s consumer protection laws such as:
Asking you to give up your car or home as payment
Taking property or written guarantees as security
Charging fees for paying your loan off early
Taking part of your pay without your consent
Harassing you, your family, or your workplace
Asking for access to your bank account
Licensed payday lenders are inspected by the Commission and must follow specific rules designed to protect consumers. For example, they must:
Write loan agreements in clear, easy‑to‑understand language
Give you a signed and dated copy of your agreement
Provide a cancellation form so you can cancel within 48 hours
Show educational information that explains the cost of a payday loan compared with other borrowing options
Limit how much you can borrow to 30 per cent of your net pay, up to a maximum of $1,500
Charge no more than $14 for every $100 borrowed
These rules and many more are in place to help protect consumers who choose to take out a payday loan.
A licensed online payday lender must clearly show that they are licensed to operate in New Brunswick. Their website should:
Display the business name, licence number, and licence expiry date for New Brunswick consumers
Clearly explain New Brunswick’s payday loan rules and ask you to acknowledge them before applying
Show key loan details, including the total cost of borrowing
Even if you search up a lender or find one through social media, it can help to visit the Commission’s licensed payday lender list to double-check if the lender is legally allowed to operate in New Brunswick.
Check New Brunswick’s Licensed Payday Lender List
If you’re dealing with a payday lender and something doesn’t feel right, support is available.
As a New Brunswick consumer, you have rights. If you believe a licensed payday lender is not following the rules, or if you’ve encountered an unlicensed payday lender, you can submit a complaint to the Financial and Consumer Services Commission of New Brunswick. Reporting unlicensed payday lending helps protect others as well as yourself.
You can also report concerns to:
The Canadian Anti‑Fraud Centre
Your local police or RCMP
Your phone service provider, if harassment includes threatening or repeated calls
When money is stressful, decisions can feel urgent. Payday loans can seem like a short-term fix, but they come with high costs and risks (especially if the lender isn’t licensed).
Before borrowing, taking a moment to check licensing, understand the costs and consider your options can help you feel more informed about what’s being offered. That way, you can make a decision that support your needs best.