In Nova Scotia, same-day loan advertisements are emerging targeting people in need of money to rent, and a credit counselor is concerned that fixing high interest rates could trigger a cycle of payments that people cannot afford in an already unstable housing environment. situations. situation.
In one online ad, easyfinancial Services offers same day loans to Nova Scotia tenants from $ 500 to $ 15,000. It is proposed to take care of the contingencies with the help of an “available loan”.
Interest on payday loans can start at 29.9%. John Eisner, president and chief executive officer of credit counseling Atlantic Canada, says this is worrying.
“I’m shocked by this,” he told CBC Radio. Information morning Wednesday.
Eisner said that by law interest rates can be as high as 60 percent, and advertisements for such loans only appear when people are vulnerable.
These high rates “exacerbate the problem,” Eisner said.
Manuel Moncayo-Adams, a Halifax resident, saw a Facebook ad for the first time this week.
“I mean, this kind of ad is disgusting at any time,” he said Wednesday.
Moncayo-Adams said he finds any ad aimed at distressed tenants as insensitive and predatory, especially after watching last week. demolition of the tent camp near the old central library of Halifax.
In an email, a spokesperson for goeasy, the parent company of easyfinancial, helps “provide access to credit for non-mainstream Canadians.”
“Easyfinancial is not a payday lender – we are an alternative financial services provider that bridges the gap between banks and payday lenders,” said Brian Tritt, goeasy’s vice president of communications, PR and marketing.
Eisner said people should seek help from nonprofit groups before choosing high-interest short-term loans.
The problem starts with the housing situation, he said, which makes people more vulnerable to same-day loan companies, which could put them in a revolving door when making multiple loans.
Eisner said the problem won’t go away anytime soon. “No matter what [payday loan companies] they say they targeted vulnerable people. “