Alberta High Court: Peace Bonds Issued Against Companies Fined for Illegal Lending

• Alberta's Consumer Investigations Unit (CIU) uncovered widespread illegal lending activities in the province.
• Quebec-based companies charged interest rates above 35%, which may constitute a criminal offence under Alberta's consumer protection legislation.
• The CIU investigation resulted in guilty pleas, fines, and court-ordered restrictions for several companies and individuals.
• Consumers are advised to verify that high-cost credit lenders hold the required licences and review loan terms carefully.

These companies also employed Telephony Denial of Service (TDoS) attacks to overwhelm phone lines, affecting not only borrowers but also their family members, employers, and unrelated third parties such as businesses, schools, and hospitals.

An investigation by Alberta's Consumer Investigations Unit (CIU) uncovered widespread illegal lending activities in the province, resulting in guilty pleas, fines, and court-ordered restrictions. The CIU launched the probe in 2025 after consumers complained about high-interest rates and intimidation tactics used by lenders to collect debts. Investigators found that Quebec-based companies charged interest rates above 35%, which may constitute a criminal offence under Alberta's consumer protection legislation. These companies also employed Telephony Denial of Service (TDoS) attacks to overwhelm phone lines, affecting not only borrowers but also their family members, employers, and unrelated third parties such as businesses, schools, and hospitals.

The investigation was conducted under the Criminal Code and Alberta's consumer protection legislation. The Consumer Protection Act requires high-cost credit lenders to hold a valid licence and prohibits interest rates above 35%. Payday lenders must also obtain a licence and may charge no more than $14 per $100 borrowed. The High-Cost Credit Regulation prohibits harassing communications, which was cited in several guilty pleas. The court-ordered restrictions, including peace bonds, aim to prevent the accused from engaging in similar activities in the future.

This investigation highlights the need for consumers to be cautious when dealing with high-cost credit lenders and payday lenders. Albertans are advised to verify that these lenders hold the required licences and review loan terms carefully, including mandatory and optional fees. Lawyers advising clients on high-cost credit loans in Alberta should note that interest rates above 35% may constitute a criminal offence under the Consumer Protection Act. The government's efforts to combat illegal lending activities demonstrate its commitment to protecting consumers and maintaining fair business practices.

Lawyers advising clients on high-cost credit loans in Alberta should note that interest rates above 35% may constitute a criminal offence, and ensure their clients' loan terms comply with the Consumer Protection Act.

Source: Original reporting via Alberta's Consumer Investigations Unit