Alberta Officially has Lowest Payday Lending Rate in Canada
EDMONTON: As of Monday (August 1st), Alberta has the lowest maximum payday borrowing rate in the country, reduced from $23 for every $100 borrowed to $15 per $100. All fees related to a payday loan must be included in the cost, which puts an end to hidden fees and charges. Also, payday lenders will no longer be able to charge a fee to cash a payday loan cheque, solicit directly by email or phone, or offer a loan when another is outstanding.
Lethbridge City Council had backed the changes and Mayor Chris Spearman was glad to see the legislation.
“I applaud the provincial government for taking bold action to end predatory lending practices in Alberta. It’s a critical step that supports our local efforts to reduce poverty in Lethbridge and prevent citizens from falling into a crushing cycle of debt.”
According to Mayor Spearman, Council backed the legislation after noticing a proliferation of payday loan vendors in the city.