Appeal of quick cash drives proliferation - Toronto Star- About: Money Before Payday
As a result, credit union members and bank customers are turning to payday loan companies. These sky-high interest rates prompted the Ontario government to introduce legislation yesterday that would cap how much payday loan companies could charge and ban controversial practices like issuing concurrent and back-to-back loans. As a result of current work it is reasonable to conclude that 10 per cent to 15 per cent of credit union members and bank customers need and use payday loans with an average loan value of $350. The payday loan industry is proactive in offering payday loans and its financial services to everyone but is largely unregulated, whereas banks are regulated federally and credit unions must comply with provincial regulations. Learn more
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