Payday Loan Companies Get Regulated

Manitoba has become the first province in Canada to put a cap on the interest rate that Payday Loan Companies charge. In response, the Canadian Payday Loan Association said that a large number of firms will have to close their doors. This will cause some consumers to move to even riskier sources of funds, including loan sharks.

Consumer groups, on the other hand, said the move is well supported by the American experience, where the most efficient payday lenders stayed in business even after tight regulations.

What do you think? Have you ever used a payday loan company’s services? Leave a comment.

One Comment

  1. Jess says:

    Never used one and I think it’s a very risky way of getting a loan… well other than loan sharks (the riskiest, you can get KILLED!!!)