Susan Leblanc, the NDP MLA for Dartmouth North, has introduced a bill that could begin to see the provincial federal government guarantee individual, short-term, вЂњmicro-loansвЂќ for amounts up to $2,000 from credit unions.
I spoke to Leblanc shortly, by phone, on and she told me the guarantee would be similar to the one the province now provides for small business loans from credit unions friday. The concept, she stated, will be offer an alternate to payday advances вЂ” the loans that are short-term by payday loan providers (like cash Mart and EasyFinancial and cash Direct and also the money shop) at usurious prices in this province. ( Both payday lenders and credit unions are controlled by the province, unlike banking institutions that are under federal legislation.)
The Spectator has discussing pay day loans вЂ” and alternatives to payday advances вЂ” before ( right right right here and here), however the introduction of the brand new legislation appears just like the perfect hook by which to hold an enhance, so letвЂ™s wade in.
The specific situation
The very first thing to be stated about payday lenders is which they do meet a societal need вЂ” they simply do so in a truly crappy, self-serving means.