Payday Loan Bill To Tackle ‘Predatory Lending’ In Alberta

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EDMONTON – The NDP government in Alberta has announced plans to introduce legislation to crack down on payday loan companies.

Legislation to end predatory lending would prevent vulnerable people from paying abusive interest rates on payday loans and sliding into poverty, Service Alberta Minister Stephanie McLean said on Wednesday.

“Albertans, more than ever, need to make sure their finances are well managed and that means they can put food on their tables and pay for the roofs above their heads,” she said. .

“They are counting on us to provide them with some consumer protection, and unfortunately payday loans put many Albertans in a cycle of debt they cannot get out of.

Details of the bill, due to be introduced in the coming weeks, were not disclosed.

A regulation that Alberta passed to govern the industry in 2009 expires at the end of June.

“Payday loans unfortunately put many Albertans in a cycle of debt that they cannot get out of.

McLean would only say that Albertans have told the government they want lower interest rates, more time to pay off what they borrow, and limits on how much payday loan companies can lend.

The government is basing its position on the results of an online poll conducted late last year.

McLean said the name of the bill reflects comments received from Albertans about the industry.

“We’ve heard that is how they feel about the way the industry has acted.”

Alberta lenders charge some of the highest rates in Canada

Alberta payday lenders can now charge $ 23 for every $ 100 borrowed, the second highest rate in Canada.

Prince Edward Island allows the highest fees at $ 25. Manitoba is the lowest at $ 17.

Alberta says the annualized percentage rate on a two-week payday loan can reach 600 percent interest.

Industry worried about the title of the bill

An industry group called the Canadian Payday Loans Association has expressed concern about the name of the proposed Alberta law and its intent.

Tony Irwin, president of the association, said she met with the province last fall about possible regulatory changes.

“We are a licensed and regulated industry in seven provinces,” said Irwin of Toronto. “Having a bill titled this way is definitely a concern. “

There are 36 payday loan companies operating 236 outlets in Alberta. The association represents 11 of the companies which manage 195 points of sale.

Irwin said the industry has told the government that making new regulations too stringent could force some payday loan companies to close.

This would force people in need of loans to go to illegal lenders, including a growing number who operate online, he said.

“The demand is not going away,” Irwin said.

“People who need credit will always need it and they will find it from someone who is not licensed by the province.

loans have been granted to people who were drunk when they applied. ","credit":"","creditUrl":"","source":"According to the Citizens' Advice Bureau, loans have been granted to people who were drunk when they applied. ","thumbnail":{"url":{"fileName":"5cd5ca651f000059009e7e59.jpeg","type":"hectorUrl"},"credit":"","width":1200,"height":800},"title":"Given loans to drunks","type":"image","meta":null,"summary":null,"badge":null},"provider":null},{"embedData":{"type":"hector","url":"https://img.huffingtonpost.com/asset/5cd5ca6521000035007259e4.jpeg","queryParams":{},"width":1200,"height":879,"credit":""},"type":"image","common":{"id":"5cd5ca65e4b0477c524842ba","caption":"The Cheque Centre, one of Britain's largest payday lenders, was reported to have sent staff to stand outside job centres and to hand out leaflets advertising their loans.","credit":"","creditUrl":"","source":"The Cheque Centre, one of Britain's largest payday lenders, was reported to have sent staff to stand outside job centres and to hand out leaflets advertising their loans.
","thumbnail":{"url":{"fileName":"5cd5ca6521000035007259e4.jpeg","type":"hectorUrl"},"credit":"","width":1200,"height":879},"title":"Plugging their loans at job centres","type":"image","meta":null,"summary":null,"badge":null},"provider":null},{"embedData":{"type":"hector","url":"https://img.huffingtonpost.com/asset/5cd5ca66240000320070c8e5.jpeg","queryParams":{},"width":1200,"height":800,"credit":""},"type":"image","common":{"id":"5cd5ca66e4b0477c524842bb","caption":"Yes, this happened - according to the Citizens Advice Bureau. ","credit":"","creditUrl":"","source":"Yes, this happened - according to the Citizens Advice Bureau. ","thumbnail":{"url":{"fileName":"5cd5ca66240000320070c8e5.jpeg","type":"hectorUrl"},"credit":"","width":1200,"height":800},"title":"Giving loans to mental health patients","type":"image","meta":null,"summary":null,"badge":null},"provider":null},{"embedData":{"type":"hector","url":"https://img.huffingtonpost.com/asset/5cd5ca662100002f007259e8.jpeg","queryParams":{},"width":1200,"height":870,"credit":""},"type":"image","common":{"id":"5cd5ca66e4b0477c524842bc","caption":"Payday lender Wonga waded into further controversy after sending a letter to a 12-year-old - offering a 'special discount' The firm said that they had only sent the letter because a survey had been filled out giving the child's age as over 18. ","credit":"","creditUrl":"","source":"Payday lender Wonga waded into further controversy after sending a letter to a 12-year-old - offering a 'special discount'

The firm said that they had only sent the letter because a survey had been filled out giving the child's age as over 18. ","thumbnail":{"url":{"fileName":"5cd5ca662100002f007259e8.jpeg","type":"hectorUrl"},"credit":"","width":1200,"height":870},"title":"Urging a 12-year-old to take out a loan","type":"image","meta":null,"summary":null,"badge":null},"provider":null},{"embedData":{"type":"hector","url":"https://img.huffingtonpost.com/asset/5cd5ca662000005b0098aafe.jpeg","queryParams":{},"width":1200,"height":802,"credit":""},"type":"image","common":{"id":"5cd5ca66e4b0477c524842bd","caption":"Payday lenders were found out by debt charity Credit Action for using the Facebook social network to target young people with ads which broke regulations as they did not list details like the interest rates.","credit":"","creditUrl":"","source":"Payday lenders were found out by debt charity Credit Action for using the Facebook social network to target young people with ads which broke regulations as they did not list details like the interest rates.
","thumbnail":{"url":{"fileName":"5cd5ca662000005b0098aafe.jpeg","type":"hectorUrl"},"credit":"","width":1200,"height":802},"title":"Hiding interest rates in Facebook ads","type":"image","meta":null,"summary":null,"badge":null},"provider":null},{"embedData":{"type":"hector","url":"https://img.huffingtonpost.com/asset/5cd5ca672500003300a345f1.jpeg","queryParams":{},"width":1200,"height":800,"credit":""},"type":"image","common":{"id":"5cd5ca67e4b0477c524842be","caption":"Payday lenders had also hounded people for loans they had never taken out and tried to shame them into paying up, the Citizens' Advice Bureau said.","credit":"","creditUrl":"","source":"Payday lenders had also hounded people for loans they had never taken out and tried to shame them into paying up, the Citizens' Advice Bureau said.

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Things you wouldn’t believe payday lenders have done

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