Calgary payday loan operators must provide information on money management under new rules
Businesses that break the rules could face fines of $1,000 for each lapse
Calgary council has slapped new rules on payday loan operators in the city.
Lenders must now verbally inform would-be borrowers on how to obtain information about money management support and debt counselling.
In addition to talking to the borrower, the lender must prominently display a sign that contains the same information.
"It's predatory lending against a particularly vulnerable part of our population, so we need to do what we can about putting rules around how they operate in our city," said Coun. Brian Pincott.
He said the city has an obligation to protect its citizens.
The move comes months after council restricted "clustering" of payday loan businesses — meaning there can't be two operations within 400 metres of each other.
That was due to concerns about the proliferation of the businesses — which charge high interest rates on loans that are often taken out to pay for rent or other immediate costs — in poor areas.
Monday's rules come with fines of $1,000 if businesses fail to provide money management information on their signs or fail to talk to clients.
Coun. Sean Chu was the only member of council to vote against the new rules.
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