Ads for same-day loans targeting people in need of rent have popped up in Nova Scotia, and credit counselor fears high-interest solution will trigger a cycle of payments that people can not afford in the midst of an already unstable housing situation.
In an online ad, easyfinancial Services is offering Nova Scotia tenants same day loans of $ 500 to $ 15,000. He suggests covering emergency expenses with an “affordable loan”.
Interest for payday loans can start at 29.9 percent. John Eisner, president and CEO of Credit Counseling Services of Atlantic Canada, says it’s concerning.
“I am appalled by this,” he told CBC radio. Information morning Wednesday.
Eisner said interest rates can legally reach 60% and loan announcements like these are only released when people are vulnerable.
These high rates “make the problem worse,” Eisner said.
Halifax resident Manuel Moncayo-Adams first saw the ad on Facebook this week.
âI mean an ad like this is obnoxious at all times,â he said on Wednesday.
Moncayo-Adams said he believes any publicity directed at troubled tenants to be callous and predatory, especially after seeing the dismantling of a tent camp outside the former central library last week. Halifax.
In an email, a spokesperson for goeasy, the parent company of easyfinancial, helps “provide access to credit to unprivileged Canadians.”
âEasyfinancial is not a payday lender – we are an alternative financial provider that bridges the gap between banks and payday lenders,â said Bryan Tritt, vice president of communications, public relations and marketing at goeasy .
Eisner said people should look 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 loan companies, which can put them in the “revolving door” of multiple loans.
Eisner said the problem will not go away anytime soon. “No matter what [payday loan companies] let’s say they targeted vulnerable people.