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 www.ab.211.ca
- 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.