Starting in September of 2009, Payday Loan Businesses in Alberta will be prohibited from charging more than $23 in fees and interest for each $100 borrowed.

Alberta Service Minister Heather Klimchuck was quoted as saying "This is a very good day for consumers in our province...We've heard from Albertans, we've listened and we've acted'".

Other measures implemented include:

Giving customers a two-day 'cooling-off' or grace period in which they can return the money.

Requiring companies to use plain, easy to understand language in contracts.

Ordering them to post their costs prominently in outlets.

Perhaps most significantly, is that the most 'dangerous' element of the Payday loan - the rollover loan - will be banned. These means that payday lenders will no longer be able to provide individuals with new loans to pay previous ones.

Alberta will also now licence any companies that wish to operate here. Additionally, Random audits will take place to ensure companies are following these new rules and legislation. Penalties are severe, and include fines of up to $100,000, a prison term of 2 years, or both.

"For the working poor, the vulnerable or people on lower income, we want to make sure that when they do use these services they know what's expected," Klimchuk said.

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