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
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.
For further information:
For further information: Hon. Stan Keyes - President of the CPLA, (905)
522-2752, Email: email@example.com