Same-day loan ads targeting Nova Scotia tenants raise concern
Ads for same-day loans targeting people in need of rent have appeared in Nova Scotia, and a credit counselor fears a high-interest solution could trigger a cycle of payments that people cannot afford in the midst of an already unstable housing situation.
In an online advertisement, easyfinancial Services is offering Nova Scotia tenants same-day loans of $500 to $15,000. He suggests meeting emergency expenses with an “affordable loan”.
Interest for payday loans can start at 29.9%. John Eisner, president and CEO of Credit Counseling Services of Atlantic Canada, says that’s concerning.
“I’m appalled,” he told CBC Radio. Information morning Wednesday.
Eisner said interest rates can legally reach 60% and ads for loans like these only come out when people are vulnerable.
These high rates “compound the problem,” Eisner said.
Manuel Moncayo-Adams, a Halifax resident, first saw the ad on Facebook this week.
“I mean an advertisement like this is at all times abhorrent,” he said Wednesday.
Moncayo-Adams said he thought any advertising aimed at struggling tenants was insensitive and predatory, particularly after seeing the dismantling last week of a tented camp outside the former Central Library Halifax.
In an email, a spokesperson for goeasy, easyfinancial’s parent company, helps “provide access to credit to unprivileged Canadians.”
“Easyfinancial is not a payday lender – we are an alternative financial provider that bridges 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 which makes people more vulnerable to same-day lending companies, which can put them on the ârevolving doorâ of more loans.
Eisner said the problem isn’t going away any time soon. “Regardless of what [payday loan companies] say, they were targeting vulnerable people.”