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
----------------------------------------------------------------------------------------
SHOCKING FACTS..FOLLOW UP!!
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]
Fact [2]
Same CBC news story;
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
'
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
----------------------------------------------------------------------------------------
SHOCKING FACTS..FOLLOW UP!!
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
CBC News ' The maximum legal interest limit on loans is 23 per cent per year.'
April 14/2012 Friend's Loan contract on my desk states interest of $100 loan for 11 days equals...APR of 768 % Repay amt = $200.84Fact [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;
http://tinyurl.com/7azxfaa
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For some reason the Google Account choice fails to work for me. TG
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For some reason the Google Account choice fails to work for me. TG
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