Payday loan companies are about to face the hammer from new provincial legislation and Penhold mayor Dennis Cooper could not be happier.
“This was an area where we definitely needed to protect Albertans more,” said Cooper. “They (provincial government) felt there was very predatory pricing from the payday loan companies, so the government is stepping forward and going after this. I think it's an excellent idea.”
The payday loan company issue was one of several areas highlighted during the NDP government's recent throne speech.
The provincial government announced plans to introduce legislation, tentatively called An Act to End Predatory Lending, that would cap interest rates charged by payday loan companies.
It's a move Cooper agrees with, noting it's “a positive step” for citizens who have to use the service.
“The people who use that service need that service for short term. They're being penalized and penalized unfairly because of the basis of how they charge,” he said.
Penhold council recently discussed concerns over payday loan companies moving to and operating in town.
“We said we're not going to restrict any businesses coming to Penhold, but we want to make sure that they're doing a good service to Penhold,” explained Cooper. “We want to make sure that as businesses move into Penhold, they can help our residents and help our citizens move forward in tough financial times and not take economic advantage.”
Cooper said the new legislation will benefit everyone, not just those who regularly use payday loan companies.
“It makes it better for Albertans. By being better for Albertans, it's better for Penhold,” he said. “The government is addressing an area that needed to be corrected and I applaud them for that.”
Other areas Cooper noted in the throne speech included the controversial carbon tax and infrastructure funding.
“The carbon tax is definitely not just going to be because of coal. That carbon tax is going to reach out and touch every Albertan,” said Cooper. “When you buy food and when you buy products that's got to be moved by rail, by car or by truck. You're going to pay a higher fee to get that product to market and you're going to pay a higher fee to buy that product. Therefore, it's going to hit everybody in the pocketbook.
“Especially in this economy where we are so tight and with so many people looking for work,” he added. “Raising this fee is definitely not going to help.”
Cooper also pointed to the $34 billion set aside for infrastructure and questioned the impact that investment will have today.
“We have infrastructure that's suffering, but even though they say they're going to invest $34 billion in the next five years, how much are they spending this year on infrastructure,” said Cooper. “We'll all know at the end of the budget on April 14.
“People are going to say, ‘great,' or ‘oh no,' but April 14 is going to answer a lot of questions.”
Dennis Cooper
"They (provincial government) felt there was very predatory pricing from the payday loan companies, so the government is stepping forward and going after this. I think it's an excellent idea."
