In Canada, there are over 1,300 payday lending outlets offering acutely costly but fast and effective how to borrow short-term cash. Payday lenders charge between $15–25 in costs per $100 lent for 14 days, leading to yearly portion prices of up to 500 %. In comparison, Canadian legislation forbids other loan providers from charging significantly more than 60 % yearly interest on loans.
Regardless of the high price of borrowing, making use of payday loan providers continues to increase. From 2009 to 2014 (latest available figures), the amount of Canadian grownups that reported utilizing a loan that is payday from two % of households to four %, borrowing almost $2.2 bn worth of loans in 2014. (more…)