Payday loaners are taking issue with the NDP government's wording for an upcoming piece of legislation: "An Act to End Predatory Lending."

The NDP announced its plan to take on "exploitative" interest rates withint that industry during Tuesday's throne speech to kick off the spring sitting of the legislature.

Tony Irwin, chair of the Canadian Payday Loan Association, said it was well known the NDP would update existing regulations on the industry because they are set to expire this summer.

But he would like to clarify what they're legislating, and why. Also, he's not happy with the bill's title.

"Certainly it's something as industry we would like to talk to government about and get a better understanding of what the intent behind the bill is," said Irwin in an interview Wednesday, noting the industry is regulated and licensed.

"It's not language that we like."

More coverage from the throne speech:

Overview: NDP blueprint for the spring session

Bell: Premier Notley promises everybody everything

Editorial: Throne speech pleasant, but vague

Payday loans are a short-term form of credit where people can borrow sums of money typically smaller than what traditional financial institutions would offer, with a limit of $1,500.

In Alberta, payday lenders are allowed to charge $23 per $100 borrowed, with the rate accrued over a short time. That amounts to a 600% interest rate on a two-week $300 payday loan at the maximum rate of borrowing.

The previous Tory government began the review of the payday loan industry and the NDP launched public consultations last fall.

On Wednesday, the government said that of more than 1,400 people who responded to its online survey, the vast majority — 84 per cent — said that the allowable borrowing costs are too high.

More than three-quarters of respondents said the maximum loan size should be lowered while 80 per cent said people who take out payday loans should be allowed to repay in instalments.

The government says its legislation will strengthen consumer protection to ensure that a short-term loan does not lead to a "vicious cycle of debt."

“Our government will protect vulnerable Albertans from paying exploitative interest rates on payday loans and spiralling into poverty," Service Alberta Minister Stephanie McLean said in a statement.

"This is especially important now, when families are managing their household budgets more carefully than ever.”

Irwin noted the payday loan industry provides a service that banks and credit unions do not.

If the government lowers the fee that payday lenders can charge, the industry can still operate in Alberta but certain companies may face a difficult time, he said from Toronto.

"We hope that we can arrive at a place where the demand that clearly exists in the province can continue to be met," said Irwin.

"Whatever the government decides to do, that's certainly our hope."

The government says there are more than 30 payday loan companies operating more than 220 branches in Alberta.

jwood@postmedia.com