The Nova Scotia Utility and Review Board has set limits on how much payday loan companies can charge their customers in interest and fees.

It set the maximum cost of borrowing at $31 on $100, including interest and fees. It also capped the default penalty at $40 and limited the interest rate on any outstanding balance to 60 per cent.

The board released a 105-page report Thursday.

During hearings in January, the board was told payday loan companies in Nova Scotia charge between $15 and $35 for every $100 lent, and most loans to borrowers average $300 and must be repaid in less than two weeks.

The board recommends the provincial government require companies to file yearly reports to track data on loans, including the number of defaults.

With files from the Canadian Press