Effect of Unemployment on the Canadian Payday Loan Industry

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Thursday, 26 November 2009 00:00

Payday loans are popular sources of emergency funds because they are easy and fast to get. These short-term loans have to be repaid in 10 to 14 days or next payday. However, because of the rapid rise in unemployment as a result of the recession, some people may be wondering how unemployment is affecting the payday loan industry in Canada.

Common Tricks of Payday Loan Scammers

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Monday, 23 November 2009 00:00

Many consumers try to obtain payday loans when they are short of cash or when there are unexpected expenses such as hospital or car repair bills. These short-term loans are relatively easy when compared to traditional loans. Even people with low credit scores may be able to get these loans because most companies do not run a credit check. Unfortunately, there are scammers pretending to be payday lending companies but their only purpose is to run away with the victim's money and not to provide them with a loan. What are the usual tricks utilised by such scammers?

Why Payday Loan Lenders Charge High Interest Rates

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Thursday, 19 November 2009 00:00

While payday loans have become popular sources of emergency funds, there have been outcries about the high interest rates that loan companies charge for such a short-term loan. These loans only have a duration of 10 to 14 days. Thus, when the effective annual rate is computed, the average rate is 400 percent per year and some may even go as high as 650 percent per annum. Let us take a look at the reasons why payday loan companies charge high interest rates.

Payday Loan 101: Collection Fees

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Monday, 16 November 2009 00:00

Payday loans are short-term loans that have become popular because they are easy and fast to obtain. The borrower can get the loan in just one day and there are very few requirements so that even those with bad credit may be able to get them. However, there are various fees that payday loan companies often charge.