Glad to see that the Ontario Government has finally taken aim at the modern day version of Loan Sharks and Usury, the “Pay Day Loan” companies that are doing unspeakable financial damage to the working poor.
Specifically the Ontario Government has said:
As of August 1, 2007, Ontario regulations come into force that will
require payday lenders to:
- Prominently display posters that disclose the cost of borrowing for payday loans
- Use a standard form and content credit agreement disclosing the details of a borrower’s payday loan and
- Provide funds to the borrower immediately upon signing their credit agreement.
These measures will improve the consumer’s ability to compare rates prior
to borrowing, fully understand the terms of their loan, and ensure that all
charges are included in the disclosed cost of borrowing.
Good for the Ontario government for doing this, but I think the fact that these companies are allowed to charge what they charge is despicable at best. The Government is also looking for more feedback on what other measures they might need to do, to regulate this industry, maybe licensing these firms would be a good idea (you license banks don’t you)?