How to Determine if The Payday Loans Act Applies to Your Business
A person is considered to be carrying on business as a payday lender in Saskatchewan if the person offers, provides or arranges payday loans to borrowers located in Saskatchewan. It also includes persons facilitating, enabling or acting as a conduit for another person that offers or provides payday loans to borrowers in the province.
All persons who carry on business as a payday lender in Saskatchewan require a licence pursuant to the Act for each location from which they carry on business in Saskatchewan. This includes storefront premises located in Saskatchewan. It also includes locations outside of Saskatchewan from which the person makes payday loans available to borrowers located in Saskatchewan, such as through a website, email or fax. If you are located outside of Saskatchewan and a person in Saskatchewan can apply for or receive a payday loan from you, then you are carrying on business in Saskatchewan and you require a licence under the Act.
If you do not wish to have your Internet, email, fax or phone based payday lending business subject to the laws of Saskatchewan, you must have procedures in place to ensure that borrowers in Saskatchewan cannot apply for a payday loan from your business.
Unlicensed lenders may be subject to regulatory enforcement actions and prosecution. Even one transaction is deemed to be sufficient evidence of carrying on a payday loan business without a licence – don’t risk it!