New Payday Loan Regulations Must Protect Consumers

CALGARY, AB (September 28, 2015): Dr. David Swann today welcomed news that the government is reviewing regulations to protect Albertans from high interest payday loan companies.

“Obscenely high interest rates charged as part of payday loans negatively impact low-income Albertans who have found themselves in dire circumstances and in need of quick cash,” says Swann. “We are talking about families in need, post-secondary students, and individuals with addiction issues.

”The government has a responsibility to tighten regulations to ensure that people are better protected.”

Swann also welcomed the involvement of Momentum Community Economic Development, a non-profit organization in Calgary, which earlier this year recommended the government lower the current maximum interest rate of 23 per cent.

“There are common sense regulations that the government can work with companies to enact so that we can prevent low-income Albertans from being exploited.”

In 2014, Alberta Liberals passed a policy resolution calling on the government to prohibit high interest charges and fees for payday and car title loans.