Payday loans are nasty business. For many customers, the ability to enter an establishment, receive a loan without a credit check, and be out quickly, can be very tempting, especially for those with emergencies. But this temptation comes at a steep price – so steep in fact that various provinces are attempting to make moves to limit these companies in an attempt to protect the consumer.
Why are they so dangerous? In a recent Global News article, a former payday loan employee spoke out about why she left the business and her reasoning speaks volumes with regard to how problematic payday loan companies are.
After Kathy Durocher sought a payday loan for emergency veterinary surgery, she thought ‘Well, this is kind of great: It’s helping people who don’t have good credit.” It seemed like a great place to work and so she found a position and was hired. However, after being trained and pressured to upsell people, giving the maximum loan available, she has changed her mind. Now, instead of helping people out, Durocher says these companies are destroying people.
While some don’t borrow the maximum amount available, employees are still required to push them to do so, Durocher noted, and can get penalized for not doing so. Additionally, employees are instructed not to speak aloud the amount the customer will owe at the end of the loan, and instead are just supposed to circle and point to it. This is why people get stuck with the sky-high fees and interest that leads many to roll over their loans on a regular basis.
Check out the full article here: http://globalnews.ca/news/2693327/we-are-loan-sharks-why-one-womans-leaving-the-payday-lending-business/.
Getting caught in a web of payday loans can become a very sticky situation, very quickly – one that can be incredibly difficult to get out of. Avoid them at all costs.
At Prudent Financial, we are actually here for our customers. Don’t get stuck – call us today at 1-888-852-7647.