More on Possible Alberta Payday Loan Regulations

[cashlenders]

Now that news has officially broken that the Canadian province of Alberta is considering regulation of the cash advance lending industry, all eyes are on Edmonton. The business of short-term, high-interest personal loans in the province has grown exponentially in recent years, mirroring the industry�s explosive growth all across Canada. Of the estimated thirteen-hundred-plus fast cash loan store locations in the country, over one hundred and seventy are in Alberta. Payday loan critics have long complained that the powerful, prosperous provincial industry ought to be regulated by the government, as it is in many other areas of Canada.

Eion Kenny, spokesperson for Service Alberta, remained tight-lipped about what cash advance lending reforms the government was currently considering. He did divulge that several payday loan companies and industry representatives had been invited to submit materials, and that the group had also asked consumer advocates for their opinion. Kenney voiced the hope that there might not need to be public hearings on the cash advance issue, due to an early consensus amongst everyone involved that both fast cash loan business licensing and interest rate caps were necessary. Kenny stated that anyone else interested in voicing an opinion on the topic had until April 21st to complete an Internet questionnaire posted on the provincial website.

Under Canada�s Criminal Code, it is illegal to charge more than sixty percent annualized interest on a personal loan, but payday loan companies have long found ways to evade that prohibition. The biggest is by charging �finance fees� rather than �interest� on their cash advances. Some lenders charge as much as twenty-five or even thirty dollars per one hundred borrowed on two week loans, amounting to interest rates of almost eight hundred percent.