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Payday Loans

Council has recently approved an amendment to our business licensing bylaw to create a new business license category for payday lenders. This change is effective October 1, 2016.

I am a Payday Lender – What do these changes mean for me?

As of October 1, 2016, all payday lenders must do the following:

1. Prominently display a sign with information about money management support and debt counselling. This sign must be:

  • Visible to anyone immediately entering the business as well as all in all locations inside the business where transactions are being negotiated;
  • In English;
  • At least 61cm x 91cm;
  • This sign must include this exact text in 144 point font: Free Money Management Support and Debt Counselling Information is Available. For More Information Call 211 or
  • Click here for a ready-to-print poster

2. Provide all customers who express interest in a payday loan with information about money management support and debt counselling. This information must include the following text: 

3. Obtain a City of Calgary business licence and renew this licence annually. This licence costs $184, and requires the following approvals:

  • Planning/Land Use (fee: $41) – Call 403-268-5311
  • Fire inspection (fee: $98) – Call 311
  • Calgary Police Service Security Clearance (fee: $40 for first owner/director, $30 for each subsequent owner/director) – processed upon application submission

There is a $1,000 fine for failure to do any of the above.

Pay Day Loans – An overview

A payday loan is a money advance of $1,500 or less provided for 62 days or less in exchange for a future payment such as a post-dated cheque or pre-authorized debit payment. You cannot use guarantees, overdrafts, margin loans, credit cards, lines of credit, pawnbrokering or property to secure a payday loan. A Payday lender is a business that offers, arranges or provides payday loans.