Ads for same day loans targeting Nova Scotia renters are a cause for concern
In Nova Scotia, ads for same-day loans targeting people in need of rental money are surfacing, and a credit counselor worries that a high rate fix could trigger a cycle of payments that people cannot afford amid an already volatile housing situation .
In an online ad, easyfinancial Services is offering Nova Scotia tenants loans of $ 500 to $ 15,000 on the same day. It suggests covering emergency expenses with an “affordable loan”.
The interest on payday loans can start at 29.9 percent. John Eisner, President and CEO of Atlantic Canada’s Credit Counseling Services, says this is worrying.
“I’m appalled by this,” he told CBC Radio Information morning Wednesday.
Eisner said interest rates can be up to 60 percent legally and ads for such loans will only appear if people are at risk.
These high rates “exacerbate the problem,” said Eisner.
Manuel Moncayo-Adams, a Halifax resident, first saw the ad on Facebook this week.
“I mean an ad like this is obnoxious anytime,” he said on Wednesday.
Moncayo-Adams said he believes any advertisements aimed at struggling tenants are insensitive and predatory, especially after seeing last week’s ads Demolition of a tent camp outside the old Halifax Central Library.
In an email, a spokesman for goeasy, easyfinancial’s parent company, helps “provide credit access to non-Prime Canadians”.
“Easyfinancial is not a payday lender – we are an alternative financial service provider that closes the gap between banks and payday lenders,” says Bryan Tritt, Vice President Communications, Public Relations and Marketing at goeasy.
Eisner said people should reach out to nonprofit groups before opting for short-term, high-yielding loans.
He said the problem begins with the housing situation making people more vulnerable to lending institutions on the same day, which can put them in the “revolving door” of multiple loans.
Eisner said the problem won’t go away anytime soon. “No matter what [payday loan companies] say they target the vulnerable. “