Ads for same-day loans aimed at people in need of rent money have appeared in Nova Scotia, and a credit counselor is concerned that a high-interest solution could initiate a cycle of payments that people cannot afford in the middle of. an already volatile housing situation.
In an online ad, easyfinancial Services offers Nova Scotia renters same-day loans of $ 500 to $ 15,000. He suggests taking care of emergency expenses with an “affordable loan”.
Interest on personal loans can start as low as 29.9 percent. John Eisner, president and CEO of Credit Counseling Services of Atlantic Canada, says this is worrying.
“I’m shocked by this,” he told CBC Radio’s Information Morning Wednesday.
Eisner said interest rates can legally reach 60%, and that ads for loans like these only run when people are vulnerable.
These high rates are “exacerbating the problem,” Eisner said.
Halifax resident Manuel Moncayo-Adams saw the ad on Facebook for the first time this week.
“I mean an announcement like this is repulsive every time,” he said Wednesday.
Moncayo-Adams said he believes any advertising aimed at distressed renters is insensitive and predatory, particularly after seeing last week’s dismantling of a tent camp outside Halifax’s old central library.
In an email, a spokesperson for goeasy, the parent company of easyfinancial, helps “provide access to credit for non-prime Canadians.”
“Easyfinancial is not a payday lender – we are an alternative financial provider bridging the gap between banks and payday lenders,” said Bryan Tritt, vice president of communications, public relations and marketing at goeasy. .
Eisner said people should turn to nonprofit groups for help before choosing short-term, high-interest loans.
He said the problem starts with the housing situation making people more vulnerable to same-day loan companies, which can put them in the “revolving door” of more loans.
Eisner said the problem won’t go away anytime soon. “Regardless of what [payday loan companies] let’s say, they targeted vulnerable people. “