Why the Ontario national Did come down Hard n’t adequate in the pay day loan Industry

Why the Ontario national Did come down Hard n’t adequate in the pay day loan Industry

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Pay day loans are a challenge. The attention price charged is massive. In 2016, payday loan providers in Ontario may charge at the most $21 on every $100 lent, therefore in the event that you borrow $100 for two weeks, repay with interest, then duplicate that period for per year, you get spending $546 from the $100 you borrowed.

That’s an interest that is annual of 546%, and that is a big issue however it’s not illegal, because even though Criminal Code prohibits loan interest in excess of 60%, you will find exceptions for short-term loan providers, to allow them to charge huge rates of interest.Continue reading