Wednesday, June 3, 2009

Alberta Puts Forth New Rules for Pay Day Loans

I wrote previously about the ways in which pay-day loans result in individuals paying more for financial services. Now Alberta has put forth a new set of rule for pay-day lenders. Some highlights:

Starting in September, businesses will be prohibited from charging more than $23 in fees and interest for each $100 borrowed.

Giving customers a two-day cooling-off period in which they can return the money and cancel the loan without paying any costs.

Ordering companies to use plain language in contracts.

Requiring them to post their costs prominently in outlets.

Rollover loans — where people with more than one loan pay extra charges — will be banned.

The province will also license any companies that wish to operate in Alberta.

No comments: