New payday loan rules take effect to protect borrowers
Posted Aug 2, 2016 12:25 pm.
This article is more than 5 years old.
The province is pointing Albertans with money woes away from payday lenders.
New rules intended to protect borrowers went into effect on Monday, which dropped borrowing rates to the lowest in the country, at $15 per $100.
Minister of Service Alberta Stephanie McLean says the government is only one part of ending debt cycles.
A new cash crunch loan is being introduced at First Calgary Financial on August 22nd. President Shelley Vandenberg says it’s one of many alternative solutions that promises to be fair.
“It has an annual interest rate of 19 per cent and a payback period of six to 18 months, which equates to just 73 cents for $100 borrowed. The first of its kind in the province to help southern Albertans with a fair and affordable small loan,” said Vandenberg. “We will be working on a case-by-case basis to find the best solution for members, or individuals coming forward and we have a network of referrals and agencies to support us.”
Under the new rules, payday lenders can’t solicit by phone or email, lend to someone who has an outstanding loan or charge a fee to cash a cheque.
