Fewer payday loan stores in Alberta

CALGARY- Service Alberta says the number of payday loans stores in the province has dropped.

The industry says regulations put in place last year by the provincial government have made its product unsustainable.

Alberta’s regulations require a payday loan cost no more than 15 dollars per 100 dollars borrowed and have a term of at least 42 days.

The combined effect of the lower cost and longer borrowing time dropped the annual percentage rate from 600 per cent to 202 per cent for weekly payments over the 42-day period.