In Canada, there are over 1,300 payday lending outlets offering acutely costly but fast and effective techniques to borrow short-term cash. Payday loan providers charge between $15–25 in charges per $100 lent for 14 days, leading to yearly percentage prices of well over 500 %. In comparison, Canadian legislation forbids other loan providers from charging significantly more than 60 per cent yearly interest on loans.
The use of payday lenders continues to increase despite the high cost of borrowing. From 2009 to 2014 (latest available figures), the sheer number of Canadian adults that reported making use of a cash advance increased from two % of households to four per cent, borrowing almost $2.2 bn worth of loans in 2014. Continue reading “You are told by us All About Disrupting the Payday Lending Industry”