[Newsbot]

Title: B.C. moves to regulate payday loan companies to better protect consumers
Category: Business
Posted By: hurley_108
Date: 2009-03-02 14:41:40
Canadian

[stokes]

Wow....what a useless law!!!

Lets do the math:

Currently these companies can charge up to 782% if the loan goes the full year.

The new legislation will cap that at a maximum of 600%

The NDP critic says it should be capped at 408%.

The average bank in canada will charge prime + 5% or currently about 8% give or take.

So please explain to me how this is suposed to help the average very poor person who uses this service to actually get ahead? Because all that i sbeing capped is the interest and not the admin fees these companies charge which can be upto $80 per loan.

[Axeman]

The silk-suited gentleman who owns the Italian bakery at Keele and Eglinton provides the same service at 15%/mo or 180% p/a. It's a sad world when the government wants to cap the interest rate at more than twice the mafia's rate. Mind you, they handle defaults a little differently.