https://padlet.com/taylor_wyatt3/5ot8t5nla4l1 By Taylor Wyatt - GNED 1119, Money Matters Assignment 2 en-us 2019-02-16 21:31:04 UTC 2025-11-16 06:40:39 UTC hello@padlet.com https://padlet-uploads.storage.googleapis.com/352583800/4b1669e3e2e5b37bf2ff597f55729e1d/money_PNG_e1532606569895.png taylor_wyatt3 https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042417 A Pay Day loan is a quick high interest loan that you (the lender) promise to pay back from your next pay cheque. Hence it being called a Pay Day loan. It's an industry famous for helping those who are in desperate needs to pay off immediate bills and necessities and then trapping those same people in a cycle of unending debt.

I was introduced to the concept of Pay Day loans by a comedian named John Oliver, who did an exposé on the industry and its underhanded practices. My topic was about listing the pros and cons of Pay Day Loans but really the major pro of the business is people are able to get quick financial relief if they desperately need it.

But apart from that one scenario where lenders are able to pay off there small less than $1500 loans, pay day loans are filled with many pit falls for lenders that leads to more debt in the end. Now I shall focus on the strictly Canadian aspect of the industry so I present to you my findings for pay day loans in Canada.]]> 2019-02-16 21:37:20 UTC https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042417 taylor_wyatt3 https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042442 This is a more recent detailing of our rights concerning pay day loans from the Ontario government. This was updated as of January 1^st 2018. It thankfully shows the laws that protect us from pay day loan companies abusing their power including not allowing "rollover" loans, not allowing additional services to be charged on top of the pay day loan,  and you can't be charged more than $15 more for every $100 you borrow. The website also details knowing wear to file a complaint, finding a licensed pay day lone lender, and common questions to help inform those that are considering a pay day loan.]]> 2019-02-16 21:37:46 UTC https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042442 taylor_wyatt3 https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042507 This is the full breakdown of the market trends for Pay Day Loans described in the CIBC news report in Video #1. The government of Canada lists numerous findings from their 1500 participant sample including demographics, size of loans, repayment of loans, reasons for loans, number of loans, household savings and several other factors for understanding the reasoning behind why so many people get pay day loans. The numbers reveal a very bleak situation for many of the participants. While a majority paid back their loans with their following pay cheques, rounding up the other methods lenders paid back their loans, including taking money from savings accounts, taking new payday loans from other lender, taking out loans from friends or family, and using bank account overdrafts, 55% confessed to doing these acts to pay off their pay day loan. The document details that irony that the lenders could have used any of these means to pay off their current debt instead but couldn't identify a core reason why they would instead take out a pay day loan. Only theorizing again that most pay day loan lenders don't understand the high interest on these specific loans they need to pay back in a short period of time.]]> 2019-02-16 21:38:53 UTC https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042507 taylor_wyatt3 https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042589 This site documents a 1500 person survey of pay day loan users to find out why people were taking out pay day loans. The results found 27%of people chose to pursue a payday loan as the bank or credit union denied their loans while 15% said they had no time to take out a loan with their bank as they required the money immediately. Only 43% correctly stated pay day loans were more expensive than other loan options. This brings forward the devilish nature of pay day loans as it relies on creating an option for those desperate for immediate payments of their other outstanding debts through them but also tacking on an equivalent of a 500-600% interest rate.]]> 2019-02-16 21:39:53 UTC https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042589 taylor_wyatt3 https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042700 An archived statistics page from the government of Canada, this site details the early rising of the pay day loan industry in Canada and how it was already beginning to amass massive debt from its young lenders. Detailing in its closing summary a definite need to regulate the industry due to its extremely high interest rates with young families being three times more likely to be using pay day loans due to the industry cornering the alternative credit union market at the time. Seeing the early days of the government trying to understand this alternative market is very interesting but shows how these companies manipulated a need from the masses for quick money to alleviate their woes and created their business model to profit off their debt.]]> 2019-02-16 21:41:30 UTC https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042700 taylor_wyatt3 https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042743 CBC details the growing problem of pay day loan debt within Canada bringing on the founder of Hoyes, Michalos and Associates to discuss it further. With an average interest rate of $15 per $100 on loans, pay day loans as of 2018 were involved in nearly 1/3 of the bankruptcy cases that approached Hoyes. But the bankrupt victims weren't necessarily poor people. Average earners making on average $4000 a month were known more for taking out pay day loans. The report details this is due to more people holding larger amounts of debt for longer periods of time and a downward trend of reduced Income. So some people end up using their pay day loans to pay off other existing debt creating a cycle of ever growing debt. It is a fact that there is a fewer number of loans taken out but the loans that are taken out are for higher values, on average $1000. It was stressed in the video though the pay day loan companies aren't a cause of issue but a symptom of our societies' living wages decreasing as the years go on. I'd definitely agree with Hoyes that consideration should be made by business owners and more to provide a living wage to their workers to begin to slowly remedy this issue. Until we can do anything like that people will continue to be desperate to escape from debt by digging themselves further into debt.]]> 2019-02-16 21:42:09 UTC https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042743 taylor_wyatt3 https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042766 A segment from CIBC Amanda Lang's The Exchange, reporting on the pay day loan industry from 2015. During the time of the footage much more of the industry was regulated on a province by province basis with little done to avoid the worst possible outcomes that have been remedied in 2017 with Canada's new laws protecting lenders from such abuse. The segment documents the pay day long regulations being drafted in the United States as a means to draw a parallel between both the US and Canadian Pay Day Loan companies and their underhanded practices that require regulation. Including median loans being dwarfed by the median fees that customers had to pay back to these companies. Thankfully many of the current regulations limit the abuse pay day loan companies can get away with but lenders should still be wary]]> 2019-02-16 21:42:41 UTC https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042766 taylor_wyatt3 https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042803 A video that clearly details how a lender can calculate the interest on their pay day loans. Considering nearly half of pay day lenders didn't understand the actual costs of their loan this is definitely a wonderful tool for those considering to borrow. The video defines the pay day loan for their calculations as under $1500 with a payment period of 62 days or less.

The calculations can be done like this to find out what interest rate you are paying.
For this example, our lender is borrowing $300 for 2 weeks for $69.
Then you plug those numbers into this equation.

(Cost of Borrowing) Divided By (Amount Borrowed) = (Interest rate of Loan for period of Time)

$69 / $300 = 23% For 2 Weeks

Then you multiply the interest rate by the number of weeks in a year also taking into account leap years which is done through calculating 365 Days divided by Two Weeks or 14 Days which equals 26.0714.

So you finally calculate (Interest rate) X (# of Weeks) = (Annual Percentage Rate)

or 23% X 26.0714 = 599.64%

Doing these simple calculations shows plain as day the astronomical interest rates that pay day loan companies are proposing to its customers and makes it clear why so many people get trapped in a cycle of debt.]]> 2019-02-16 21:43:13 UTC https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042803 taylor_wyatt3 https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042833 This is an infomercial from Money Mart's direct youtube channel detailing what is necessary to apply for a pay day loan at their locations. Unlike the videos, images and sites above from Money Mart's perspective they are selling an easy hassle free means to pay off debt in between pay cheques. The actors make sure to consistently reiterate the key words of ease of the pay day loan to make them enticing for customers to get them. I notice they mention how the customer receives their money quick and fast multiple times but never mention the reality that these quick easy loans will need to be paid back. It could be chalked up to it be stating the obvious or more likely mentioning that process would yield negative responses. All the information on the high interest rates and such is still apparent with all pay day loan companies, Money Mart may make it easy to get money but they also make it easy to receive more money from their clients that they help.]]> 2019-02-16 21:43:57 UTC https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332042833 taylor_wyatt3 https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332043149 This an infographic breakdown from the Financial Consumer Agency of Canada detailing the market trends for Pay Day Loans in Canada. It breaks down the many reasons why payday loans have become the most expensive form of money lending in Canada and urges consumers by the end to “stop the debt cycle.” To see the growth of payday loans increasing from 1.9% in 2009 to 4.3% in 2014 makes me very worried for the consumers of the current 2019 as debt will just keep piling up as necessities in our lives continue to grow in expense.]]> 2019-02-16 21:46:53 UTC https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332043149 taylor_wyatt3 https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332043279 An ad from a pay day loan company called Mr. Payday, exhibiting a colourful and seemingly helpful business model. No matter your credit or history this company has a 99% guarantee that they can give you cash up to $1500 for you to pay off your loans or payments. It's a case of too good to be true as it neglects that a pay day loans business model directly profits off people not being able to fully pay back their loans so companies like Mr. Payday make money off just the interest that they take off their customers, taking it out of their wages. If an offer sounds this good, do not believe in it. Research it. Then truly decide if you want to do a pay day loan or get a loan from literally anywhere else.]]> 2019-02-16 21:49:31 UTC https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332043279 taylor_wyatt3 https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332043398 And please avoid getting any sort of pay day loan.]]> 2019-02-16 21:51:24 UTC https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/332043398 taylor_wyatt3 https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/337085650  ]]> 2019-03-02 04:34:09 UTC https://padlet.com/taylor_wyatt3/5ot8t5nla4l1/wish/337085650