By the numbers
March 31, 2009 | industry, international | Comments (0)From a story out of Canada:
69% People who are aware of the amount they pay for all payday loan fees
21% Those who use payday loans because of convenient locations
35% Borrowed the money to pay for necessities
31% Borrowed the money because of an unexpected expense
47% Those who use payday loans because they are quick and easy
We take it all back
February 6, 2009 | industry, international | Comments (0)Anything bad we’ve ever said or thought about Canada or the hearty, freedom-loving people who live there, we take back. Just listen to the wisdom of an independent government advisory board examing payday lending:
The board says payday loan are expensive because they’re designed as small, short-term loans, not because the industry is earning excessive returns.
It notes that payday loan companies generally lend to consumers who have jobs, and that welfare recipients don’t qualify for loans from most payday lenders in Ontario.
It says payday loans should only be available to consumers who can “realistically” be expected to pay them back on time, and some loans shouldn’t be made because they are too risky – such as loans to people on welfare.
In tribute to our Canadian friends, the Payday Pundit will watch a hockey game tonight and throw down a six-pack of Labatt.
Is this a parody?
November 4, 2008 | alternatives, industry, regulation | Comments (0)In the Canadian province of Alberta, they are deciding that they need more “consultations” before they implement restrictions on payday lenders. They apparently had no idea how many people needed them before they acted. From the story:
Alberta won’t place controls on payday lenders’ fees and interest charges for another year, after deciding more consultations are needed before it acts.
Earlier this year, Service Alberta signalled it was readying a new consumer protection bill for the spring, to follow the lead of Manitoba and Nova Scotia in limiting the fees borrowers must pay for the small, short-term loans.
According to Statistics Canada, two-week loans of $100 can cost the equivalent of a 650 per cent annual interest rate.
