New limit for payday loan lenders

Alberta will soon have a cap on the amount of interest payday loan lenders can charge customers.

New rules set the maximum cost of borrowing at $23 per $100 borrowed, including all interest and fees, Service Alberta

Minister Heather Klimchuk said yesterday. The changes are to ensure consumers are being charged fairly, said Klimchuk, adding that charges for short-term loans in the province can vary from an average of 30% up to 40%.