Payday lenders starting to feel pinch from new Alberta regulations
CALGARY — The garish yellow storefronts promising quick and easy cash are starting to dwindle in Alberta as the payday loan industry says provincial regulations put in place last year have made its signature product unsustainable.
The number of payday stores has dropped to about 195 from some 220 this time last year, according to Service Alberta.
Cash Money says it’s reduced the number of loans it issues from around 30,000 a month a year ago to a range of 1,500 to 1,800 as it denies all but the least risky borrowers.
“The situation in Alberta is unfortunate,” said Cash Money spokeswoman Melissa Soper. “Without profit we can’t risk losses, so we have to deny those with riskier credit scores.”