Payday Loans: the Cost of Being Poor

The Backbench

Starting January 1st, the criminal interest rate on predatory lending will be lowered, meaning it should be safer to take out payday and installment loans. But these businesses have a tendency to skirt the law, adding unexpected fees and insurance rates to keep borrowers in the hole.

Sam welcomes Donna Borden to the show - an organizer with ACORN. She’s been a victim to these loans, and is now fighting against them. Will the crackdown work and really help lower people’s payments? How can we make short term loans a real option for people struggling, without the sky-high payments?

Host: Sam Konnert

Credits: Aviva Lessard (Producer), Sam Konnert (Producer), Caleb Thompson (Audio Editor and Technical Producer), Max Collins (Director of Audio), Jesse Brown (Editor), Tony Wang (Artwork)

Guests: Donna Borden

Background reading:

• Debt struggles spark concerns - Toronto Star
• Anti-poverty advocates call payday lenders 'criminal,' urge feds to cap interest rates | CBC
• New rules to curb predatory lending still leave many vulnerable - Globe and Mail
• How a $200 payday loan cost over $31,000 - CBC Radio

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