Canadian Payday Loan Association Welcomes Payday Loan Regulations in Alberta
(HAMILTON,ON,) June 3 /CNW/ - The Canadian Payday Loan Association (CPLA) said today that the new payday loan regulations announced by the Alberta government strike the right balance in ensuring both consumer protection and a viable industry.
Many of the elements of Alberta's new regulations are already part of the CPLA's "Code of Best Business Practices" - introduced four years ago and adhered to by CPLA members.
The Alberta government has also set the maximum allowable fees to be charged for a payday loan at $23 per $100 borrowed - including all charges the consumer would pay. The government-instituted cap on payday loans will protect consumers from unscrupulous lenders while still allowing them to access payday loans as a needed and valued financial tool.
"The government has taken a balanced approach to the payday loan industry, ensuring consumers are protected from the minority of those companies with bad business practices charging exorbitant rates, while still ensuring responsible lenders can viably operate and provide this legitimate financial product that consumers demand," said the Hon. Stan Keyes, President of the Canadian Payday Loan Association.
The CPLA has been actively working for five years with governments to pass legislation and implement maximum fees to ensure a balance between a viable industry and consumer protection.
Upwards of 2 million Canadians have used payday loans to cover small-sum, short-term emergencies. Loans are capped at $1,500, with the average loan being $280 for 10 days.
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For more information, contact:
Hon. Stan Keyes – President of the CPLA
(905) 522-2752
Email: stan.keyes@cpla-acps.ca