Wednesday, April 25, 2012


Loans Gouging in Canada?

At  my  elbow  I  have  a  loan  agreement that a disability  friend  got  from  A  BC  payday loan  store.

My  friend,  like  most disabled persons,  is  addicted  to  cigarettes.  The  pay-day  loan  people  know  this  and  so  they  charge a  massive  interest  for 10 to 20  day cigarette loans.

The  loan  term  in this  contract  is  only  11  days.  Stated  loan  interest is $37.55

However  the  amount  borrowed  is  $100  and  the  repayment  amount  is  $200.84

The  trick  here  is  that  loading  a  card  for  the  customer  with  $100  value  costs  $50  and  taxes.

There  is  no  itemized  mention  for  the  card loading  fee  of $50

The  loan  contract  includes  four  pages  of  fine  print  paper work  so  there  is  no  way  a  customer  can  read  and  understand  all  the  complexities.  These  disabled  people  need  cigarettes  so  badly  that  they  just  sign  the agreement  regardless.

So  with  the  card  fee,  $50  and  the  loan  amount,  $100,  the  amount  owing  becomes  $163.29

Thus  the  total  to  be  repaid  is  $200.84  for  a  loan  of  $100  for  11  days.

The annual interest  rate  stated  on  the  contract  is 763.046%.  However,  quick  math  on  your  part  should  give  you  a  far  different and  higher interest  rate.

Loading  value  on  a  gift  card  at  Zeller's  costs  nothing.  How  do  our  Provincial  and  Federal  governments  allow  a  $50  fee  for  loading  a  card   at the  payday  loan  office?

How  do  our  provincial    and  federal  governments  allow  this  loan  gouging  of  disabled  persons  in  Canada?   Both  the  Harper  conservative  government  and  the  Christi  Clarke conservative   government ,  disguised  under  the  Liberal  label,  allow minimum or no  regulations  on  business,  but  this  free-for-all  for  profits  is  going  too  far.   At  least  for  those  of  us  who  have   a  slight  idea  of  fairness  in  business.

What  do  you  think?   Is  this unseen  and  unknown  practice good  business  in  your  view?

PS:  Snakes  are  beautiful .  I  really  like  snakes  but  loan gougers  are  the  lowest. TG


Loan sharking  white  collar  crime   is  condoned  by  Federal  and  Provincial  conservative  governments.  The  Christy Clark  B.C.  government  is in fact  Conservative  under  a false liberal  label.

Fact:   [1]

Thursday, November 11, 2010 | 6:38 AM PT

April 14/2012  Friend's Loan contract on my  desk  states   interest  of  $100  loan  for  11  days  equals...APR  of  768 %   Repay  amt = $200.84

Fact [2]

Same  CBC  news story;

'We're serious about enforcing consumer law.'—Manjit Bains, Consumer Protection BC.
This contract on my  desk  proves  that  to  be  an  amazing  lie.

Fact  [3]

There  are  12  pages  of  irate  comments  on  the  CBC  news  website.   Don't  bother  to  comment  there.  While  I  like  the  CBC,  it  is  clear  that  no  one  is  listening.  No  one  cares.  Nothing  is  being  done.

My  disabled  friend  has  made  more  than  10  of  these  desperate  for  cigarettes  loans.  There  has  never  been  a  refund  or  penalty  and  the  rip - off  continues  every  day.

Only  in  Canada  you  say?  Amazing  and  an  absolute  disgrace. TG


Payday loan company must refund B.C. fees

  check  the CBC facts, paste the link;

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