From CBC Saskatchewan:
It is expensive to be low-income. Many low-income families turn to payday loans when unexpected circumstances pop up–which can end up charging them effective annual interest rates of up to 600%. The social justice organization ACORN has been calling for governments to force payday loan companies to lower the rates they charge.
Some promising developments:
- In February 2018, Saskatchewan is going to be setting the maximum borrowing charge on payday loans at 17% (down from 23%).
- Affinity Credit Union in Saskatchewan has started making “microloans” (small loans which can be paid back over a period of to 2 years) available to customers who would normally turn to payday loans.