The federal government is trying to come up with alternatives to payday loan companies
Posted January 8, 2011 12:16 pm.
This article is more than 5 years old.
The federal government is trying to come up with alternatives to payday loan companies three years after legislators regulated the controversial sector.
A federal-provincial committee has commissioned a study into cheap short-term loans that countries like the U-S offer.
Payday loans typically average 280 dollars for two weeks until the customer’s next paycheque arrives then they can be charged 20 to 30 per cent of the loan.
The study, obtained by the Canadian Press under freedom of information, says there are less expensive ways to provide short-term credit to low-income workers.
Quebec already has a short term loan system through its credit union system.
