Ben Johnson get rid of places that finance furniture and electronics at extremely high rates as well. Their a place called Aaron's nearby that you'll end up paying twice the price for any item over the financing period. Payday loans should go first but places like that should go as well
We've got "Easy Home" in my town. Their fliers tout easy "bi-weekly payments". When the payments are all added together the furniture or electronics are at least 3 or 4 times more expensive than if you'd saved your pennies and bought them outright from legitimate retailers. They are loan sharks with a veneer of furniture store.
Everyone has their own agency in this country no one is forcing anyone to sign up for a loan on horrible terms. Thanks Rick but we don’t need a nanny state.
As someone who borrowed from a payday loan, all naive and innocent, it is very difficult to maintain or to even overcome. With the added interest, they will also try to sneak in extra costs and fees, such as an account maintenance charge or for paperwork.
6 лет назад+9
Very simple solution: put a cap on the actual interest rate. Any contract that amounts to more than that is void.
The interest rate is always touted as affordable, low, easy payments, etc. The killing shot comes with labels like "admin fees". So cap "interest rate" but these snakes will just crank up their "admin fees".
Actually there was a very article in the Atlantic a couple of years ago. These businesses are not particularly profitable do to the high default rate. The customers of these places are not interest rate sensitive. That is why even if there are lots of competition the rates do not change.
I love Rick Mercer and i hope he has a successor planed cause we need more people like him to help show the draw backs of every party thats in power . Not everyone is perfect i know but i don't want to choose between the lesser of two evils at the booths.
My main concern though, is that if there are clientele for these businesses (and clearly there are) then another solution needs to be put in the place of payday loans. There are probably people who unwittingly fall for the jingles, underestimate the risk, and end up trapped in the system and that's unacceptable. However there are undoubtedly others who go to places like these who are in such desperate situations that they can't afford to consider the risks. Obviously, even in the latter case, the people who enter the system end up in a worse situation than if they hadn't. What I'm saying is, that the positive services that these companies pretend to offer, need to be addressed in earnest, or there will always be a customer for these sharks.
This is an excellent point. If we want to solve the problem (ie help people who are struggling) the solution is not to regular predatory businesses, but to make sure people are not falling through the cracks, financially. In a country with a healthy economy/safety net, payday loans wouldn't exist. The predatory businesses would dry up and vanish in an economy where people weren't choosing between starving and high interest rate loans.
Enter the Canada Post with decent interest rates. Canada post can make a fortune off of this even if the interest rates are reasonable! Heck they might even hire extra people to handle it! Everyone wins.
A little plug for Rachel Notley here: the AB government has been cracking down on payday loan sharks from day one, and has tasked Alberta Treasury Branches (the province owned bank) with providing reasonable loans plus credit counselling to people who need it. This is the way.
Amen!! It is way too late to take action on these places. They are predatory and need to banned or at least be heavily regulated the way drug and alcohol products are.
the interest rate the payday loan companies charge are illegal under section 347 of the Criminal Code of Canada, but no one wants to prosecute them for it.
Only with simple interest can you get 390%. (15%*26 = 390%) The miracle of compound interest 15% every 2 weeks for a 52-week period turns out to 3685.68%. ($100 loan accumulates to $3785.68 at the end of a 52-week period) ... Please be careful with your calculations.
I had an acquaintance work in the constituency office of an MPP in Ontario who was drafting a bill to regulate Payday loan lenders. The number of constituents who contacted the MPP and begged them not to was astounding. People apparently depend on these things. Not saying that it's not predatory, but do you listen to constituents, or do you tell them that you know better than they do and regulate them anyway? Regulating them probably the right choice in the end, but my point is that nobody asked the people who use them how they felt about it.
wow. only 390%? in the UK the payday loans companies will actually tell you in the small print of the tv ads that some have interest rates of over 3000% (highest I remember was around 4300%) !!! I honestly can't understand how any of this is legal. And why anyone would be stupid enough to take out a loan from them.
I knew people in the payday loan cycle.. when you use it once, you’re stuck forever.. Borrow $1,000 until your chq comes in.. pay it back, then you need another advance to get you through the week... the cycle continues.. Now every chq, you get $150 less for the payday loan you needed one time.
Yes, payday loans are bad. But prohibitting them just forces the industry into dark and scary places. Today payday loans can "only" make your life miserable with incessant phone calls for unpaid balances. A prohibitted loan shark can blackmail you or inflict debilitating pain. An alternative has to be instituted. Expanded debt counselling that emphasizes education over more debt. Community based or charity based loan organizations? Sincere efforts to adress poverty with better paying jobs and affordable housing?
Lana Gramlich I think they began in the 1990s. Alberta's new government wanted to crack down on them. Smart move. They take advantage of vulnerable people.
All good and kind. But if there is a market, people will find a way to procure and provide that service. "Shut them down " just forces them underground. At least as a "legitimate" business people are still protected by the credit system. You know the one where if you don't pay them, the worst they can do is damage your credit and threten you. Drive then underground and they become much more dangerous.
Blackmail. Physical threats. Threatening family members. Illegal loan sharking could be truely horrific. Alternatives to payday loans need to be instituted. Perhaps payday loans need to be illegal until clients prove they have spent time with a debt counsellor. If budgetting and lifestyle adjustments don't do the trick then, ok, they need a temporary loan. Maybe rolling balances need to be illegal. Payday loan clients are self-identified financially insecure people. Letting the industry keep these people trapped is like try to cure alcoholics with "cheap" bottles of whiskey.
In this case, Rick is totally wrong...by signing a Payday loan agreement...you HAVE to payback the loan plus the fee....on your next payday.....or you will not be able to get a loan...and for those that have perfect credit...this helps some people when payments of utilities come due, no matter when you get paid....
I'm not saying these are great places, but there are two sides to this. What is the minimum amount you would accept as payment to pay someone to do the paperwork in a storefront you lease so that someone could borrow $100? That business simply will not exist if they are charging 58 cents to make that transaction happen, so they charge a much higher amount that allows them to pay the employees and keep the lights on. Perhaps the business should not exist, but it does exist, and people are using it. People are getting some value out of this (or at least think they are), or they wouldn't be going in. Without an industry providing this would people be seeking out worse alternatives? I will admit that I don't know why people take loans of small amounts over short periods of time. I suspect most people commenting here that such places should be shut down don't know either. There must be a reason, however (and I don't think it's because of the advertising jingle) and if that reason remains after these place are shut down then people will seek something else to meet the same need.
For a time I was caught in the loop of these loans. As the people in need are taken advantage of I have no problem saying there is a way to turn the tables. Now there is a loophole in the 48 hour claus. Use some creativity and leg work and you figure out how to slowly dig your way out.
I believe in this circumstance we should be looking at the big picture. I don't think anyone WANTS to take out a payday loan, but this payday to payday lifestyle a lot of people in the country lives in is not sustainable. One unexpected charge or expense and you're behind for a long time. We need go lift people out of poverty before we go and shut down a business that may or may not be able to help them in a jam.
Kingsoupturbo You are right. These people should just go without groceries or fall behind in their rent. There IS a "gun" pointing at their head... Poverty - Even though they have jobs, they are still poor. You should run for public office. You would do very well with such a kind heart. Do not judge others unless you have walked in their shoes. Be happy that you do not have to get one of these payday loans. Stop mocking those who have little (no?) choice.
"... may... help them in a jam." No, absolutely not. Payday loans are a deep hole trap. If you, anyone, is in financial trouble payday loans will make the situation much worse. Payday loans are a cure for financial trouble as the cure for alcoholism is a 40 oz bottle of whiskey. Ideally those feeling the temptation to go to a payday loan need to find themselves in debt counselling. First and foremost financial problems need to be adressed with carefull budgetting. If and when that well is dry a low interest loan may be required. Finally, if they can't even qualify for a loan then it's time for government welfare. Directing them to a payday loan is tantamount to marching them to the cannibal butcher.
Hey I hear you sir, I've had a lack of money on occasion, and had to make tough choices, but I see people makeing poor financial decisions all the time, cars they can't afford but want for status, investment condos that'll make them rich but are falling behind on the payments, endless trips to mexico, those are people I feel goto payday lending stores, I sat outside one once for 15min or so, watching who went in, its guys getting out of dodge Rams with giant exhausts, not the humble working poor of this country. The Question is how much does Gov. have to save people from their own poor decisions? At least they should cap the compound interest of payday loans, just like the system in the USA of traffic tickets that add interest continously until they pull your license that needs overhaul.
So~I've just gotta wonder. Who tf down voted this? Was it rich folk who don't give a shite? Was it 13yo's who just go down an entire list of videos and down vote? Who? WHO ARE YOU? Ya tools.
... I the company not called "Pay Day Loans". They say on the radio, they'll loan you cash if you need cash now and can't wait till payday... Payperiods are normally exery 2 weeks, therefore if you pay them back in a reasonable amount of time... Then the problem is their customers, not the company.
People also have the choice not to go to these places. Yes I understand that what I am saying but we all have choices. Educate yourself and understand that risk of what you are getting into. Call a credit counseling service and get help. This just shows that people can hid behind companies and screw people over. That is not right and I am not sure how some of these people can sleep at night on their $10000 mattresses and in their million dollar homes. I hope not well.
But what about a young couple (ya, my kid ) who think they know it all, don't qualify for a bank loan? Just got a new job, no credit, bank says no. Wanting to put a deposit on a rental, refuses help from mom and dad, no choice... what else can they do? Be homeless??
I agree. Get rid of the payday loan industry.
Ben Johnson get rid of places that finance furniture and electronics at extremely high rates as well. Their a place called Aaron's nearby that you'll end up paying twice the price for any item over the financing period. Payday loans should go first but places like that should go as well
We've got "Easy Home" in my town. Their fliers tout easy "bi-weekly payments". When the payments are all added together the furniture or electronics are at least 3 or 4 times more expensive than if you'd saved your pennies and bought them outright from legitimate retailers. They are loan sharks with a veneer of furniture store.
I agree they are scumbags but people have to take some personal responsibility as well.
Ben Johnson Ban alcohol too. Does more damage.
Damn right
Everyone has their own agency in this country no one is forcing anyone to sign up for a loan on horrible terms. Thanks Rick but we don’t need a nanny state.
Payday loans are evil. They need to be made illegal.
Anyone else notice these places only open in poor neighborhoods?
Water Bottle In my town the poor neighbourhood has at least one in each block. All shiny, friendly and enticing... it's grotesque.
I know of one in Oakville surrounded by $800,000+ houses.
cuz they know the minute they start cutting off credit in a runaway debt and consumer based economy, the circling of the drain commences
Comic book guy might say, "Worst loan shark ever.".
Yes! Rick you are the man! Call them as they are, worst that loan sharks!
You can default on payday loans and lots do. Loan sharks break legs.
As someone who borrowed from a payday loan, all naive and innocent, it is very difficult to maintain or to even overcome. With the added interest, they will also try to sneak in extra costs and fees, such as an account maintenance charge or for paperwork.
Very simple solution: put a cap on the actual interest rate. Any contract that amounts to more than that is void.
The interest rate is always touted as affordable, low, easy payments, etc. The killing shot comes with labels like "admin fees". So cap "interest rate" but these snakes will just crank up their "admin fees".
Actually there was a very article in the Atlantic a couple of years ago. These businesses are not particularly profitable do to the high default rate. The customers of these places are not interest rate sensitive. That is why even if there are lots of competition the rates do not change.
Their interest rates are actually already illegal under the criminal code, but for some reason they are unable to enforce the law
Love ya Rick!! New fan!!
Keep on preaching!!!! :)
Fantasic rant. Like wow, you inform me more about this stuff then the actual news !
I love Rick Mercer and i hope he has a successor planed cause we need more people like him to help show the draw backs of every party thats in power . Not everyone is perfect i know but i don't want to choose between the lesser of two evils at the booths.
The Dislikers of this video are reps of these Payday Loan companies
Thank you Mercer,totally agree!!!
My main concern though, is that if there are clientele for these businesses (and clearly there are) then another solution needs to be put in the place of payday loans. There are probably people who unwittingly fall for the jingles, underestimate the risk, and end up trapped in the system and that's unacceptable. However there are undoubtedly others who go to places like these who are in such desperate situations that they can't afford to consider the risks.
Obviously, even in the latter case, the people who enter the system end up in a worse situation than if they hadn't. What I'm saying is, that the positive services that these companies pretend to offer, need to be addressed in earnest, or there will always be a customer for these sharks.
This is an excellent point. If we want to solve the problem (ie help people who are struggling) the solution is not to regular predatory businesses, but to make sure people are not falling through the cracks, financially. In a country with a healthy economy/safety net, payday loans wouldn't exist. The predatory businesses would dry up and vanish in an economy where people weren't choosing between starving and high interest rate loans.
Enter the Canada Post with decent interest rates. Canada post can make a fortune off of this even if the interest rates are reasonable! Heck they might even hire extra people to handle it! Everyone wins.
the banks let you overdraft on your checking account by 300 dollars, thats something that could come handy
Yeah how about you don't spend money you don't have?
A little plug for Rachel Notley here: the AB government has been cracking down on payday loan sharks from day one, and has tasked Alberta Treasury Branches (the province owned bank) with providing reasonable loans plus credit counselling to people who need it. This is the way.
Here here!
Well said.
Amen!! It is way too late to take action on these places. They are predatory and need to banned or at least be heavily regulated the way drug and alcohol products are.
Absolutely agree!
The term is predators. They are predators.
the interest rate the payday loan companies charge are illegal under section 347 of the Criminal Code of Canada, but no one wants to prosecute them for it.
Relevant Watch - Episode 2 of "Dirty Money" on Netflix Canada - Scott Tucker and his payday loan scandal.
Amen. Should be making the banks have some sort of short term loan assistance for people.
Only with simple interest can you get 390%. (15%*26 = 390%)
The miracle of compound interest 15% every 2 weeks for a 52-week period turns out to 3685.68%. ($100 loan accumulates to $3785.68 at the end of a 52-week period)
... Please be careful with your calculations.
I had an acquaintance work in the constituency office of an MPP in Ontario who was drafting a bill to regulate Payday loan lenders. The number of constituents who contacted the MPP and begged them not to was astounding. People apparently depend on these things. Not saying that it's not predatory, but do you listen to constituents, or do you tell them that you know better than they do and regulate them anyway? Regulating them probably the right choice in the end, but my point is that nobody asked the people who use them how they felt about it.
wow. only 390%? in the UK the payday loans companies will actually tell you in the small print of the tv ads that some have interest rates of over 3000% (highest I remember was around 4300%) !!! I honestly can't understand how any of this is legal. And why anyone would be stupid enough to take out a loan from them.
I knew people in the payday loan cycle.. when you use it once, you’re stuck forever.. Borrow $1,000 until your chq comes in.. pay it back, then you need another advance to get you through the week... the cycle continues.. Now every chq, you get $150 less for the payday loan you needed one time.
Payday loans need to be illegal.
Yes, payday loans are bad. But prohibitting them just forces the industry into dark and scary places. Today payday loans can "only" make your life miserable with incessant phone calls for unpaid balances. A prohibitted loan shark can blackmail you or inflict debilitating pain.
An alternative has to be instituted. Expanded debt counselling that emphasizes education over more debt. Community based or charity based loan organizations? Sincere efforts to adress poverty with better paying jobs and affordable housing?
Loan sharks. They're basically a criminal enterprise.
I could not agree more. Also John Oliver beat you to the punch on this one
James Sutton Different country and different regulations. Payday loans shouldn’t exist in Canada as there are usury laws.
Damn right, i agree too !!! Get rid of the payday loan industry.
It's peter to pay paul and it doesn't end till you end the cycle!
It's 18-20% per MONTH in BC
"Seal their doors, shut them down." With the leader we have now, pigs will grow wings first.
Um, how about if people just stopped taking out payday loans?
Me watching this for school and stuff:
taxes and cost of living/business increases = people forced to get payday loans
Weekly pay will solve a lot of these problems
When did these become legal in Canada??? Better yet...Why???
Lana Gramlich I think they began in the 1990s. Alberta's new government wanted to crack down on them. Smart move. They take advantage of vulnerable people.
All good and kind. But if there is a market, people will find a way to procure and provide that service. "Shut them down " just forces them underground. At least as a "legitimate" business people are still protected by the credit system. You know the one where if you don't pay them, the worst they can do is damage your credit and threten you. Drive then underground and they become much more dangerous.
Blackmail. Physical threats. Threatening family members. Illegal loan sharking could be truely horrific.
Alternatives to payday loans need to be instituted. Perhaps payday loans need to be illegal until clients prove they have spent time with a debt counsellor. If budgetting and lifestyle adjustments don't do the trick then, ok, they need a temporary loan. Maybe rolling balances need to be illegal.
Payday loan clients are self-identified financially insecure people. Letting the industry keep these people trapped is like try to cure alcoholics with "cheap" bottles of whiskey.
In this case, Rick is totally wrong...by signing a Payday loan agreement...you HAVE to payback the loan plus the fee....on your next payday.....or you will not be able to get a loan...and for those that have perfect credit...this helps some people when payments of utilities come due, no matter when you get paid....
Banks dont want to do low amount loans so they exist because the banks wont do thouse type of loans. Credit unions aren't much better
I'm not saying these are great places, but there are two sides to this. What is the minimum amount you would accept as payment to pay someone to do the paperwork in a storefront you lease so that someone could borrow $100? That business simply will not exist if they are charging 58 cents to make that transaction happen, so they charge a much higher amount that allows them to pay the employees and keep the lights on. Perhaps the business should not exist, but it does exist, and people are using it. People are getting some value out of this (or at least think they are), or they wouldn't be going in. Without an industry providing this would people be seeking out worse alternatives?
I will admit that I don't know why people take loans of small amounts over short periods of time. I suspect most people commenting here that such places should be shut down don't know either. There must be a reason, however (and I don't think it's because of the advertising jingle) and if that reason remains after these place are shut down then people will seek something else to meet the same need.
Predatory lending should be illegal
Payday loans is legalised loan sharkery. Call them vulture scum out Rick.
Better than being homeless honestly. Thats what payday loans are for.
For a time I was caught in the loop of these loans. As the people in need are taken advantage of I have no problem saying there is a way to turn the tables. Now there is a loophole in the 48 hour claus. Use some creativity and leg work and you figure out how to slowly dig your way out.
Not to mention that they are coincidentally in low income neighborhoods!
Want to hear your take on Macron's trip to India.
AllRequired Why? He already did one on Trudeau’s visit. He isn’t likely to do another similar rant so soon.
Holy hell yeah! Shut them out of our country. Scamming jerks!
I believe in this circumstance we should be looking at the big picture. I don't think anyone WANTS to take out a payday loan, but this payday to payday lifestyle a lot of people in the country lives in is not sustainable. One unexpected charge or expense and you're behind for a long time. We need go lift people out of poverty before we go and shut down a business that may or may not be able to help them in a jam.
The concept is bad, payday loans, but nobody is holding a gun to their head to get these loans either
Kingsoupturbo You are right. These people should just go without groceries or fall behind in their rent. There IS a "gun" pointing at their head... Poverty - Even though they have jobs, they are still poor. You should run for public office. You would do very well with such a kind heart. Do not judge others unless you have walked in their shoes. Be happy that you do not have to get one of these payday loans. Stop mocking those who have little (no?) choice.
"... may... help them in a jam." No, absolutely not. Payday loans are a deep hole trap. If you, anyone, is in financial trouble payday loans will make the situation much worse. Payday loans are a cure for financial trouble as the cure for alcoholism is a 40 oz bottle of whiskey.
Ideally those feeling the temptation to go to a payday loan need to find themselves in debt counselling. First and foremost financial problems need to be adressed with carefull budgetting. If and when that well is dry a low interest loan may be required. Finally, if they can't even qualify for a loan then it's time for government welfare. Directing them to a payday loan is tantamount to marching them to the cannibal butcher.
Hey I hear you sir, I've had a lack of money on occasion, and had to make tough choices, but I see people makeing poor financial decisions all the time, cars they can't afford but want for status, investment condos that'll make them rich but are falling behind on the payments, endless trips to mexico, those are people I feel goto payday lending stores, I sat outside one once for 15min or so, watching who went in, its guys getting out of dodge Rams with giant exhausts, not the humble working poor of this country. The Question is how much does Gov. have to save people from their own poor decisions? At least they should cap the compound interest of payday loans, just like the system in the USA of traffic tickets that add interest continously until they pull your license that needs overhaul.
People should just use a trustfund like Trudeau
i hope canada taxpayer federation watches this!
But the government is no better
So~I've just gotta wonder. Who tf down voted this? Was it rich folk who don't give a shite? Was it 13yo's who just go down an entire list of videos and down vote? Who? WHO ARE YOU? Ya tools.
CREATIVE FINANCIAL SOLUTIONS FROM GUESS WHERE ... America. ... Global Capitalism's JERRY SPRINGER SHOW.
I personally have used payday loans with no problems, but I can see how they can cause lots of trouble for people.
And let me be clear..I disagree with this system but I ask what else can they do...banks need to be a bit more lenient on the young starting ou!!
Maureen Antoski These organizations (actually scammers) prey on any vulnerable person. Sad.
... I the company not called "Pay Day Loans".
They say on the radio, they'll loan you cash if you need cash now and can't wait till payday...
Payperiods are normally exery 2 weeks, therefore if you pay them back in a reasonable amount of time... Then the problem is their customers, not the company.
People also have the choice not to go to these places. Yes I understand that what I am saying but we all have choices. Educate yourself and understand that risk of what you are getting into. Call a credit counseling service and get help. This just shows that people can hid behind companies and screw people over. That is not right and I am not sure how some of these people can sleep at night on their $10000 mattresses and in their million dollar homes. I hope not well.
But what about a young couple (ya, my kid ) who think they know it all, don't qualify for a bank loan? Just got a new job, no credit, bank says no. Wanting to put a deposit on a rental, refuses help from mom and dad, no choice... what else can they do? Be homeless??