As a debt solutions organization, we often have clients come in and talk about problematic payday loans and how they continue to struggle with meeting the repayment requirements. When it comes to payday loans, we always try and suggest other forms of financial relief – and a recent CBC News report demonstrates clearly why we might do so.
The report, released earlier this year, examines the case of a B.C. payday lender who was ordered to repay over $1 million to customers after charging up to 35% interest.
By law, payday loan lenders cannot charge more than 23% interest per month. And sure, this may seem like a fair deal, the existence of a cap on how much lenders can charge, but 23% is still a whopper when it comes to the end amount that you are paying to borrow a few hundred dollars!
Check out the full article here: http://ca.finance.yahoo.com/news/cash-store-ordered-pay-1m-illegal-payday-loans-152335287.html
Payday loans are never a good idea, and should be avoided at all costs – not only because of the exorbitant interest rates, but also because they become increasingly difficult to pay off.
Don’t let a payday loan interest cap fool you - there are many other options as far as financial relief. Contact DebtCare Canada today for more information: 1-888-890-0888.