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

The NDP has said previously it would consider looking closely at regulations in other provinces like Manitoba, where payday lenders cannot charge more than $17 per $100. As it stands, Alberta’s $23 rate is now the second highest in Canada.

Service Alberta Minister Stephanie McLean said the government heard loud and clear during consultations that the maximum interest rates need to be lowered, while the amount of time to repay the loan needs to be extended.

She suggested there may be a transition period for the industry to adjust and said the province wants to ensure there are alternative sources of lending in place for payday loan clients.

A representative of the Canadian Payday Loans Association could not be reached for comment Tuesday, but the organization has said further regulation would damage an industry that provides a service that banks and credit unions do not.

Liberal Leader David Swann is supportive of government action and hopes the NDP will direct the provincially owned ATB Financial to provide lower-interest loans to help fill the gap.

“The main issue is we need to make (loans) more accessible, more affordable, less onerous,” he said.

“ATB needs to step up and these private operators either need to step in line with more reasonable interest rates and terms or they need to get out.”

Jeff Loomis, executive director with the Momentum community economic development organization, said in a statement that for low-income earners, “access to affordable, short-term credit is key to avoid bad debt and achieve financial stability.”

With files from Darcy Henton, Calgary Herald

jwood@postmedia.com