The payday loan industry in Alberta is facing a government review.
Service Minister Devon Bilous made the announcement Wednesday morning in Calgary, saying Albertans will have a chance to offer their input through a survey and consultations will be conducted with the industry.
A payday loan is a loan of $1,500 or less, with a term of 62 days. However, if the loan isn’t paid back quickly, the fees can be fairly high.
Bilous said there are more than 30 payday loan companies in Alberta with more than 220 branches.
“There is a need that payday lenders are fulfilling. In that, Alberta families do need short-term loans either to make ends meet, to pay the rent for groceries,” said Bilous.
“So the intention is looking at how do we ensure that Alberta families aren't getting taken advantage of.”
Freida Richer with Grant Thornton welcomes the review.
“It’s gotta be a balance definitely, between regulating these companies so that they can operate like any other business. Also balancing that with the needs and protection of consumers,” said Richer.
The province said it doesn’t want to ban pay ban lenders for fear it would drive the business underground.
The deadline for the survey is October 28 and it can be found here.
With files from CTV's Kim Taylor
