Services Alberta Minister Heather Klimchuk said the maximum-charge rule had to waith for federal approval. (CBC)

The rule limiting how much Alberta payday-loan companies can charge consumers will finally come into force March 1, even though it was announced by the province last June.

The new rule means payday-loan companies can't charge more than $23 for each $100 a consumer borrows.

The delay in enforcing the rule was caused by the need for approval from the federal government, which has now been granted.

"The federal government's approval of the maximum cost of borrowing is the final piece of the regulation that provides consumers with strong protection," said Service Alberta Minister Heather Klimchuk Friday.

Under the Payday Loans Regulation, the maximum cost of borrowing includes interest as well as any fees lenders charge as a condition of the loan.

Other consumer protection provisions in the regulation came into effect on September 1, 2009, including:

• Prohibiting "rollover" loans that allow consumers to pay off previous payday loans at an extra cost.
• Requiring that payday lenders be licensed by the provincial government and post a security.
• Allowing a two-day cooling-off period during which consumers can return the money and cancel the loan without incurring any costs.
• Prohibiting "discounting," the practice of deducting or withholding money from the amount of the loan so that the consumer receives less than they intended to borrow, or has to pay higher fees on the amount borrowed.

The regulation also requires that lenders use clear, plain language contracts, and prominently post information in their stores explaining the cost of borrowing.