Brand New PIAC Report: Enhancing Protection for Payday Loan Consumers in Canada

OTTAWA – a research that is new posted by the Public Interest Advocacy Centre (PIAC) suggests that numerous cash advance users stay unacquainted with their legal rights, and discover it difficult to determine payday loans’ high rates of interest and expenses. Repeat borrowing and continuous debt-cycles carry on to prevail, with several users uninformed on how best to handle debt rounds, and better handle their funds. The study shows that the current federal government resources on payday advances, i.e., provincial information web sites and complaint filing procedures are underused, as numerous cash advance users have no idea of the presence. “Payday loan users’ absence of understanding about their liberties and current redress systems is concerning, because of the alarmingly high rates of interest and expenses of payday advances, it is time that prompt action is taken fully to deal with these records deficit,” said Tahira Dawood, Policy and Research Analyst at PIAC.

Other redress mechanisms for handling cash advance dilemmas, that the Report additionally learned, remain problematic. Actions such as for example filing a claim in little claims court is, in accordance with the quantities included as well as the way of pay day loan uses, expensive, burdensome and time-consuming. Continue reading →