Bankruptcies involving pay day loans on the increase

Bankruptcies involving pay day loans on the increase

Very nearly four in ten Ontario insolvencies in 2018 involved pay day loans, based on research by insolvency trustee company, Hoyes, Michalos & Associates.

The company adds that despite legislative modifications to cut back customer danger, pay day loan use among greatly indebted Ontarians continues to increase.

Trapping customers

“Regulatory changes to reduce the expense of pay day loans and lengthen the period of payment are no longer working for heavily indebted borrowers whom feel they will have hardly any other choice but to show to a cash advance,” claims Ted Michalos. “together with industry it self has simply adjusted, trapping these customers into taking right out more as well as larger loans, contributing to their general monetary dilemmas.”

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