New payday lending laws give Alberta lowest borrowing rate in country
Posted Aug 2, 2016 8:36 am.
Last Updated Aug 2, 2016 8:37 am.
This article is more than 5 years old.
The Alberta government is updating new payday lending laws that went into effect Heritage Day.
Service Minister Stephanie McLean will review the changes Tuesday in Calgary.
Under the new law, our province has the lowest maximum borrowing rate for payday loans in the country.
Before the change lenders could charge $23 on a $100 loan.
Now, it’s $15 for every $100 and those taking out a loan have 42 days to pay it back before interest can be applied.
The province made the changes to combat what it called “predatory lending practices.”
In some cases, the annual interest rate on loans was as high at 600 per cent.
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