The Province of Alberta regulates payday lending under the Consumer Protection Act (Alberta) and the Payday Loans Regulation. These rules create certain protections for borrowers, here is what you should know:

 

1. A payday loan is an unsecured loan of $1,500 or less with a term of 62 days or less.

 

2. The maximum costs of borrowing for a payday loan in Alberta is $14 per $100 borrowed. No licensed lender can charge more than this amount.  As an example, if you borrow $500 from Loan Bridge, the total fee will be $70 ($500 / 100 * 14 = $70).

 

3. The repayment of your loan can be structured across up to 7 installments and a minimum of 2, depending on when you receive your pay cheques or deposits from your employer.

 

4. The repayment term for a payday loan can range from 42 to 62 days. No payday lender can charge you a penalty for early repayment.

 

5. A payday loan is an unsecured loan of $1,500 or less with a term of 62 days or less.

 

6. You have a right to cancel your payday loan agreement within two business day receiving the funds without penalty.

 

7. You have a right to repay your loan early at any time. You also have a right to receive a copy of your loan agreement before signing it.

 

8. Payday lenders cannot roll-over a payday loan or issue any other credit to a borrower with an outstanding payday loan.

 

To verify any payday lenders license you can contact the Alberta Consumer Contract Centre at 1-87774727-4088 or the Government of Alberta Website.

 

You are encouraged to read the information the Government of Alberta has provided on payday lending which is accessible here.

 

The Bank of Canada provided certain financial education resources which you are encouraged to read and which are accessible here.