The Department of Community and Government Services reminds Nunavummiut that payday loans are “a very expensive way to borrow money” and that companies that provide such loans must meet certain standards.
Payday loans are short term and carry significantly higher interest rates than regular bank loans or lines of credit.
“High interest rates and potential additional fees make payday loans more difficult to repay, which can increase financial hardship and stress,” GN said in a public service statement Friday morning.
When dealing with payday loan companies, the government recommends meeting the following criteria:
-the business has a physical address, phone support or live chat
– it does not require upfront payment, as the setup fee must be paid from the loan account itself
– it does not specify how the loan funds can be spent
-it can be found on the Better Business Bureau’s list of accredited payday companies in Canada.
For more information, please contact the Consumer Affairs Office at 1-866-223-8139 or visit https://www.gov.nu.ca/community-and-government-services/information/consumer-affairs.