How to get the best payday loans, plus advice on what to do if you’re facing a loan breach
More than $30 million in payday loans are at risk of being taken out by unscrupulous lenders, according to a new report by CBC News.
The federal government’s Consumer Credit Protection Agency says more than 4,000 people have been affected in the past six months by payday loan companies, including online lenders, payday lenders and payday collection agencies.
The agency’s director of consumer protection, Catherine Bieler, says the financial crisis has prompted lenders to offer low interest rates on credit cards and other types of debt.
“They’re now offering these low interest rate credit cards that have a lot of credit protection and they’re going to offer those to consumers who are struggling to pay the bills,” she said.
“We’ve seen some companies offer these low rate credit card to people who are desperate for help.
They’re not making it through a week.
So they’re desperate to get this credit card.”
The bureau says people can find out about the payday loan risk by visiting their credit card provider’s website or by calling 1-800-411-3374.
The bureau is calling on the Canadian Association of Financial Institutions (CAFE) to release more information on how to protect yourself from payday lenders.
Bieler says the bureau also has received complaints from customers who say they were charged fees and lost money because of a payday loan breach.CBC News is following up on the CBC’s story.