Posted December 16, 2021
A group which advocates for low-to-moderate income earners wants Ottawa to act on what it calls the criminal interest rate of predatory loans.
ACORN New Brunswick spokesperson Peter Jongeneelen says if you can’t get a loan from a bank you must resort to other lenders with staggering interest rates.
“They are starting their loans at 30 percent. Some of them for installment loans are going up to 46.9 percent”
Jongeneelen says additional fees and insurance push these types of loans even higher and he adds even short-term loans become astronomical.
“Like a cash advance from Money Mart for $1500, their APR or annual percentage rate, is 391.1 percent.”
Jongeneelen says payday lenders were mentioned during the federal election campaign and he wants the federal government to take action.
Article by Allan Dearing for CHSJ 94.1