online cash advance
Capping the Numbers
By the time additional provisions were in place by April 1, 2009, the Online cash advance Act was also altered by Ontario’s Maximum Total Cost of Borrowing Advisory Board so the most money that could be charged per $100 borrowed is $21. For a standard two-week online cash advance, that’s 21 percent, which is not out of the realm of feasibility.
However, there was little or no penalty in place for consumers who defaulted on their loans. It seems unconscionable for there not to be consequences when a consumer makes a promise to repay a debt and doesn’t follow through. Such a lack of safeguarding damages payday lenders severely, just as it would any business that exposed itself to financial risk but didn’t have the tools to protect itself in the event of default. This is definitely an example of the nanny state at work, absolving others of taking responsibility for themselves.
Now Ontario has an Order Dealing with “Criminal Interest Rates”
Specifically, “Order Designating Ontario for the Purposes of the Criminal Interest Rate Provisions of the Criminal Code P.C. 2009-1628 October 1, 2009” has taken a big step toward expunging out-of-control interest rates. Online cash advance companies that fail to toe the line will no longer be able to escape notice. This is an order “DESIGNATING ONTARIO FOR THE PURPOSES OF THE CRIMINAL INTEREST RATE PROVISIONS OF THE CRIMINAL CODE.” It appears in large, capital letters because Ontario wants it known that from this point forward, all online cash advance stores in the province are required by section 347.1 of the Criminal Code.. But what will happen to the lack of protection afforded online cash advance companies for customers who don’t pay? What does Nanny Ontario plan to do about that? This isn’t a game of jacks among five-year-olds; these are adults who should have learned to take responsibility for their actions a decade or more before. It would be in the best interests of its citizens if Ontario (and Canada as a whole) reconsidered this ridiculous lack of penalty for default.
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