Payday loan firm told to cease business
Last Updated: Tuesday, December 1, 2009 | 5:49 PM MT
CBC News
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This Calgary payday lender has been ordered to close up shop. (CBC) The Alberta government has ordered Call4Cash, a Calgary payday lender, to cease its operations.
The company has refused to meet new licensing and regulatory requirements introduced in September, and is no longer permitted to operate as a payday lender until it becomes licensed, Service Alberta Minister Heather Klimchuk said in a news release
“The new rules we put in place in September are specifically designed to protect people who take out payday loans,” Klimchuk said. “All payday loan companies in the province need to adhere to these rules. Those that don’t could face stiff penalties.”
Call4Cash has been contacted numerous times by the province in the past three months about the new regulation, but the government says it has refused to respond. An order under the Fair Trading Act was served on the company on Nov. 30 requiring it to cease operating as a payday lender until it is properly licensed.
Alberta’s payday loans regulation says payday loan companies must be licensed by the province; display information about the cost of borrowing; use a plain language contract; and allow a two-day cooling off period for consumers to change their minds.
It also bans certain types of loans and fees, and will set the maximum total cost of borrowing at $23 per $100 borrowed, including interest and any fees,.
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