There has been a lot of talk regarding the new strict rules and regulations for the payday loan industry in many provinces across Canada. These regulations are the effect of years of lobbying by consumer protection forums to protect the interest of borrowers. Even though the payday loan industry themselves have welcomed most of the new regulations, there is still a talk amongst many individuals about the drawbacks of the way payday loans work and negative consumer experiences in the past.
However, with constant talk against the payday loan industry, many of the regular borrowers or patrons of payday loans have started to speak up as well. There is no doubt that the industry needed some regulations especially to differentiate between the legitimate companies and the fly by night lenders who were in it to make the most of a situation. But it is completely unfair to constantly talk about the negatives of the industry when there are literally hundreds of thousands of people each month who are being helped by the very same industry to meet with their bills and other emergency expenses.
What regular borrowers of payday loans feel is that a few cases of overcharging by some lenders and a few negative experiences of certain borrowers have ended up causing a lot of storm. There are many people who genuinely depend on payday loans for effective money management and to run their households without having to wait for their paychecks at the end of the month. At the same time, borrowers themselves feel that individuals applying for such loans should be more responsible in their financial habits. Many individuals borrow money when they are well aware of the fact that they may not be able to repay on time. These individuals are also aware of the interest rates and other charges in case of a default but still go ahead and apply for the loan to get quick cash in their hands. Regular borrowers feel that these kinds of individuals are the ones who ruin it for others.
Borrowers who have spoken up for the payday loan industry feel that at least the new regulations in place will not just stop exploitation by certain lenders, but will stop many of the errant borrowers as well from further going into debt. It is felt that the payday loan industry has the same pros and cons as any other loans or banking financial instruments for borrowers and each person should do their due diligence before applying for the loan appropriate for their specific situation.
