Predatory Practice

Well you gotta hand it to them; they certainly seem like nice people. The payday loan people. They advertise non-stop. Their commercials are constantly on the radio and the television. They’ve got those catchy jingles that were written by Satan himself so they enter your head and they just stay there forever. You need cash? You need money? They’ve got cash and money. The business model is very simple. If you show up and you’re upright and you’ve got air in one lung they’ll give you money.

The terms are incredibly reasonable or at least they seem generous. Like, say you’re in Ontario, say you want a thousand bucks, they’ll give you a thousand bucks. But they’ll charge you 15 bucks for every hundred bucks. Now, math is not my high suit but even I can figure this out. 15 bucks on a hundred bucks, that’s 15 percent. That sounds pretty good. Except it’s not. Because it’s 15 percent every two weeks. Thanks to the miracle of compound interest that's an annual interest rate of 390 percent.

They are giving cash advances to the poorest, most vulnerable people in society and charging an annual interest rate of 390 percent. Loansharking is 60 percent. I would call them weasels except weasels have a moral compass. Every province has tried to regulate this industry and still they manage to find a ways to operate. Kind of the way that poison gas will fit under the crack of any door. It's time for the federal government to get serious here; forget the regulations, seal their doors, shut them down.

Posted: 14/03/2018 9:36:08 AM | with 0 comments

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