Interesting news item a few days back in the Winnipeg sun turns out the courts in Manitoba have ordered insta loan and the cash store to pay back 67 people who were over charged on fees they were charged I wonder if the same thing will happen in ont I heard they have cases before the courts And also I wonder if this is why these companies dotn do pay day loans any more

Outside of some hot spot sectors out West, the Canadian economy has been in a slump since 2008, particularly in provinces like Ontario that have depended so much on manufacturing. Millions of jobs in Canada and the US have been outsourced to China, India, and other parts of South East Asia where the workers get 10X less than here. As a result, those economies are strongly growing, while ours remains stagnant. We've never fully recovered from the 2008 recession. The real unemployment rate, as opposed to the official one which only included those on EI or registered with agencies, is staggering.

Looking at job ads in Kijiji, many unskilled factory labour jobs get 6000 views. Because of slack demand for and over supply of unskilled workers due to unwise immigration policies, large numbers of skilled jobs go unfilled. Meanwhile, at the lower end, office workers, factory labourers, retail clerks and truck driver wages haven't gone up in 12 years while the price of staple items has skyrocketed.

The minimum wage hasn't kept up with the cost of necessities of life such as rents, groceries and public transportation. As a result, those working in menial positions often fall below the poverty line.

Always keen for an opportunity, payday loan outfits have deliberately positioned themselves in areas that are close to the working poor in order to exploit their desperation. Calling people irresponsible for not meeting their obligations when their disposable income is negative is the height of hipocrasy such as WalterBl has done.

I think the one thing that is missed (or perhaps preferred to be ignored) is that there is a sizeable minority of people who irrespective of how much they are told, the detail of the information they are given, the spelling out of the repayments, the interest rates etc, who will still take on loans which they will not pay off. And the reason they will not pay them off is because on day 1 they will have the money to do so but on the day the bill comes in they will instead chose to ignore the bill (or the impending direct debit) and spend their money on some other transient gratification. In effect these people will never manage their finances. They will all ultimately end up with loan sharks and in debt. Use responsibly and everything will be ok.

HI....i had a problem something like yours to....what you can do is email them and tell them not to call you anymore if these people are harrassing.You can get a consoldaiton loan and repay them off even at a lower rate.I had called my lawyer and he told me if they keep harrassing me to lodge a complaint with the consumer protection branch (your) government and consumer services ministry,,hope this helps you out

i have been using payday loans and personally i dont find them any evil for us...they are just there to help you when you need money to pay off your debts and they don't need any credit check..

Why wouldn't it be worth it to them? They know you are employed so the judgment will be enforceable and if they sue you they get to collect costs. I have no personal experience with Payday loans nor do I have any statistics for Canada but in the States PayDay loans do seek judgements frequently. You think $600 is a small amount but once the NSF fees and costs start getting added it will quickly increase. Also if you think about it of all kinds of unsecured debt PayDay Loans would be the kind that it makes the most sense to litigate. The only reason they might hesitate to sue is because based on some of the interest rates these places charge I believe they are in violation of usury laws.

There is also the possibility that they don't even need to sue you depending one what you sign. Some of these places include wage assignments in their contracts or pre-signed asset transfer agreements which allows them to behave pretty much like they already have a judgment. It really depends on who you got the loans from and what was in the documents you signed. The more reputable places don't do stuff like this but you need to read the documents especially if you went to one of the smaller sketchy places.

You should try to work something out with them. You don't want to declare bankruptcy but the damage this is going to do to your credit going forward is almost as bad -- especially if it is multiple loans which from your post it seems like it is.

There is also the issue that you will start to owe you bank money as others have pointed out they continue to try to debt your account and every time they do that you get dinged with an NSF fee or if you have funds they take them even if you needed them for something else. Eventually this will lead to you owing the bank money and likely losing your account if you don't bring the balance out of the negatives. The Payday lender will also ding you with a fee so it makes sense for them to keep doing this as they are just increasing the amount you owe as the NSF fee is considerably greater than the actual transaction cost.

Closing the account would be fraud and now we have left credit issues and are dealing with criminal issues. Again I have no idea if the Payday loan places will push it and to be honest I don't think they would but I wouldn't ever want to put myself in a position where I owe money to someone who if they really wanted to could get me into criminal issues.

I just noticed you are in Alberta. The collection agency that handles these out there is notoriously brutal. I can't remember their name except that it starts with a C -- something like Cutter Recovery Services.

Your best play is to sell anything you have of value and just pay them.

Yeah, maybe close that bank account and open up a new one if you are continually being dinged for NSF fees.

You're right, it isn't really a huge amount of money and they have to accept some sort of partial payment. You might be better off saving up enough money month by month to pay them off entirely than trying to work out an arrangement with them though.

From personal experience they will continue to try and take the money from your account, which will cause you to have additional amounts from the bank fees, so you are better to make arrrangements with them for small amounts and prevent the hassle.

Hi Everyone.

I am hoping someone can shed some light on my current situation. I am at a point where i don't know what to do so i'm just looking for a few suggestions.

I got myself into a right mess. I was going along fine and working lots of hours at work when after a visit from an out of country relative i overspent. I ended up having to take a payday loan to tide me over. Somehow in the matter of a few months i have racked up tons of debt with a number of these outlets. I began borrowing from one to pay off another and so on. At the end of it all i am now in a position where i am just not paying any of them. I currently have 4 that i am trying to work out payment options with but to no avail they either want it all up front which i am in no position to do. Or they all tell me if i go in and pay i can just reloan with them but that defeats the purpose of this and i will never get out of this cycle if i do that.

My question is. For small amounts like $600 or $500 is it at all worth it for these companies to take me to small claims court? I do realize they will eventually begin reporting to the credit bureaus and cause havoc on my credit but if i had decent credit i would have never have used these places to begin with so i am not cencerned with that.I am however concerned with having my wages garnished and or loosing an entire pay to one of these places. As alot of this was caused by my room mate ditching me with a two bedroom apartment i can't find another room mate for.So at the moment i am living hand to mouth. And no i have no relatives in Canada so staying with someone isnt an option for me. Realisticly i cant pay any of these places until i find another room mate. And i'm not going to declare bankruptcy because i owe a few payday loan companies money. So would they take me to court and if so how long would the time period on that be.

Any suggestions on what to do would be appreciated.