Re: “Cash store ordered to repay customers,” Dec. 11.
The article might lead readers to a false conclusion. It says that a cash store was charging “more than the maximum legal amount of $23 per $100 on the loans.”
This suggests an interest rate of 23 per cent. What is not mentioned is that borrowers have to pay $23 to borrow $100 for two weeks. This is an annual interest rate of 599 per cent, a figure which is actually displayed in the cash stores.
I think readers would be interested to know that some of our poorest and most desperate citizens are being charged an effective interest rate of 599 per cent a year. Surely we as a society can do better than this for them. At the very least, we should know what is going on.
© Copyright 2013