Online Payday Loans

“The only thing lacking right now… is enforcement of the law.”

According to an article entitled High Interest: Protecting the Illegitimate Profits of Payday Lenders, Canadian consumer advocate Bruce Cran believes that existing federal legislation* is sufficient but needs to be enforced.

*Under the Canadian Criminal Code, lenders cannot charge more than 60% APR.

He also has some interesting advice for Canadian borrowers who owe large amounts of interest to payday loan shops…
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“Whether or not this is the best way for people to borrow money, it’s a legitimate option in the marketplace.”

Lawyer Bruce Hallsor believes payday loans are a choice that should be made available to people who have a poor credit rating and can’t get loans from banks…
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“It’s the first class-action, of which there are several out there, in which a decision has been rendered involving the legality of the fees that were charged by a payday-loan company… I think it has significant implications to the other cases that are outstanding. We believe the reasoning in this case will apply to any of the fees that are charged by any of the other payday-loan operators.”

Lawyer Paul Bennett commented on a recent ruling by the Canada Supreme Court…
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“I accept the plaintiff’s submission that if processing fees and late fees are interest, and their payment results in payments at a criminal rate, then A OK has necessarily received interest at a criminal rate.”

Canada Supreme Court Justice Brenda Brown ruled that a payday loan company A OK was charging “criminal” rates of interest…
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