Alberta Legislation

The province of Alberta regulated the issuing of payday loans beginning in part on September 1, 2009, with the limit on interest coming into force on  March 1, 2010.  The federal government acknowledged this regulation by issuing an exemption from Criminal Code section 347.1 on February 2, 2010 effectively creating a pathway to legalizing payday loans across Canada.  Under the exemption, loans with a term of 62 days or lower and a principal amount of up to $1500 are now covered by provincial regulations rather than the federal interest rate cap.

In Alberta, the provincial limitations were initially set as:

• The maximum interest rate was set at 23%
• prohibiting rollover loans
• limiting overdue interest rates
• consumer disclosure rules detailing the manner in which rates are shown
• financial literacy information required to be distributed to borrowers

In 2016, after the election of the NDP government and due to a substantial lobbying campaign by Momentum, the payday loan legislation was radically overhauled with the maximum interest rate dropped down to 15%, and all loans required to be for between 42 and 62 days, with three payments (or two if the borrower is paid monthly).

Resources for payday loans in Alberta:

• Payday Loans Regulation
• Order Designating Alberta for the Purposes of the Criminal Interest Rate Provisions of the Criminal Code
• Consumer Protection Act (see page 86)
• Canadian Payday Loan Regulations
• Payday Loans Timeline