Cash advance hearings begin at Utility and Review Board

Cash advance hearings begin at Utility and Review Board

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Customer advocates concerned borrowing price of $25 per every $100 is simply too high

Nova Scotia’s energy and Review Board has begun a series of hearings into cash advance laws when you look at the province.

The hearings will examine anything from the expense of borrowing towards the price of defaulting on loans.

David Roberts, a customer advocate, argued the cost of $25 — per $100 lent — has to be reduced. He stated it ought to be between $17 and $23, that are prices for sale in other provinces.

Peter Gurnham and Roland Deveau, whom lay on the energy and Review Board, both claimed that after the board set the rate of borrowing at $25 per $100 lent, the $25 cost had been supposed to be a cap that is maximum. The board likely to see competition among payday lenders to provide reduced prices.

An economic consultant showed that almost all stores charge the maximum price, without much price competition in research presented to the board.

“clearly that is not taking place, in reality everyone’s moving into the top,” stated Roberts. “The part associated with regulator would be to down move it and alleviate force or burdens in the borrowers.”

‘They go into a period’

Gordon Arsenault, with all the Credit Counselling Services of Atlantic Canada, stated their solution views a nagging problem with duplicated use of loans. Read more