02 March 2009

Why bother?

The BC Government has introduced legislation to bring down the allowable interest rates charged for payday loans - to 23 percent for a two week loan. That amounts to 600 percent per year.
"It's certainly not a form of credit we would encourage consumers to use," said Solicitor General John van Dongen. "It is a high interest rate," he said, adding that the rate strikes a balance between protecting borrowers and allowing lenders to do business. "Some payday lenders believe this rate will not allow them to be viable," he said.

Would that the free market squeezed them out of existence.

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