Canadian Payday Cash Advance Regulations Applauded
By Paul RizzoPayday Loan Writer
The Salmon Arm Observer in Canada wrote the following response to recent payday cash advance regulations in the country …
Recent legislation from the federal government that allows provinces to further regulate no fax cash loan companies is welcome news, as is B.C.’s new legislation that will regulate payday lenders and limit the cost of borrowing.
A study from Statistics Canada shows that families who have little savings, no credit cards and are struggling to pay their bills are more than four times as likely to use the loans than those who can keep up with their bills.
Online payday loans are generally short-term loans that require no credit check; borrowers leave a cheque dated for their next payday which will cover the loan plus fees.
Stats Canada said concerns have been raised about questionable practices within the payday loan industry such as high borrowing costs, insufficient disclosure of contract terms, unfair collection practices and spiralling debt loads resulting from loans being rolled over.
Under B.C.’s new legislation, borrowers will have the right to cancel a fast cash advance within a certain time by returning the money.
We applaud the move to remove some of the desperation from those B.C. families who are already facing desperate times
