Canadian $100 bills are counted in Toronto, Feb. 2, 2016. (Graeme Roy/THE CANADIAN PRESS)
EDMONTON — Alberta is taking action to control just exactly what it terms exploitative behavior by pay day loan businesses, but a spokesman for the industry states the modifications are incredibly extreme they’re going to do more damage than good.
Provider Alberta Minister Stephanie McLean introduced legislation that would enforce lower interest costs and broaden repayment rules thursday.
«These modifications will significantly lessen the interest that is annual for pay day loans, » she told reporters just before presenting a bill into the legislature.
«(This) will market reasonable and accountable lending practices. «
Pay day loan loan providers offer money to individuals tide them over from paycheque to paycheque. The loans could be a maximum of $1,500 and needs to be paid back within 8 weeks.
Considering that the loans are deemed to be for brief durations and extraordinary circumstances, the Criminal Code permits them to go beyond the utmost 60 % interest rate that is annual. […]