Province plans to cap payday loan rates
Alberta will join most other provinces and cap the interest rates that payday loan companies can charge customers.
The province also plans to regulate other aspects of the industry. That will include licensing payday loan businesses and requiring that they clearly disclose their rates, Service Alberta spokesman Eoin Kenny said yesterday.
Kenny said the changes to the Fair Trading Act, including details of the interest rate cap, are expected to be made by the spring.
“We are looking at taking the responsibility for setting the interest rates for payday lenders – setting a cap, or maximum rate they can charge,” Kenny said.