Tuesday, October 20, 2009

Ontario Payday Loan Restrictions Coming into Force

But Nanny State Leanings Make it All Ridiculous

It's all well and good when you're seven, but Ontario wants to nanny its payday loan customers so they don't have to be responsible. (Photo: flickr.com)

It's all well and good when you're a baby, but Ontario wants to nanny its payday loan customers so they don't have to be responsible. (Photo: flickr.com)

When it comes to short-term consumer lending, few products are as quick and convenient as a payday loan. The bulk of payday loan companies in Canada operate within the bounds of established governmental guidelines into order to provide consumers with a safe, affordable product while businesses collect profits that offset operating costs. Yet there are an unfortunate few who attempt to operate “beneath the radar,” charging overly inflated rates and enforcing abusive loan terms. Section 347 of the Canadian criminal code attempts to regulate this with a limit of 60 percent interest that can be charged per annum, but further intervention has been necessary in order to protect consumers. … click here to read the rest of the article titled “Ontario Payday Loan Restrictions Coming into Force



1 comment:

  1. I am glad they are restricting some of these unfair businesses. It's ridiculous to charge these struggling people 60 percent interest?! Are you kidding. One place that my friends use that has helped give them payday loans in Ontario is a place called direct money online. It's not bad

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