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Payday loan licences have dropped by more than one-quarter since the NDP government enacted stricter rules for lenders in 2016 and more brick-and-mortar stores could be shuttering over the next 12 months, warns the president of the industry association.

Prior to Bill 15, also known as the Act to End Predatory Lending, payday loan companies had about 230 licensed stores in Alberta.

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But as of two weeks ago, that number had dropped to 165, Canadian Consumer Finance Association president and CEO Tony Irwin said.

Cash Money, Canada’s second largest lender, has withdrawn from payday loans altogether and no longer offer products as they exist under the new legislation because “it simply wasn’t viable for them,” Irwin said.

“That’s not insignificant,” he said. “And they wouldn’t be the only ones but they are the biggest providers.”

A payday loan of $1,500 or less must be repaid within two months. In 2016, the government estimated Alberta has about 240,000 payday loan holders borrowing about $500 million a year.