Are Easy Financial's installment loans a good deal? (CBC Marketplace)

Uneasy Money | Originally broadcast February 27, 2015.
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[@Vinny-bb2tj]

I'm glad marketplace is actually such a real show for the people, I hope it never gets cancelled by the big bosses on top, the owners

[@Sam081590]

I work at one of the big 5 banks, and I see so many clients suffer through these legal loan providers, who in my eye are simply legal loansharks. If the bank says no to you for a loan, there's a good reason for that. If you find the need to go to these places, you need to re-think your life.

[@GEES44DC]

+Sam Listen to this man.

[@lenitaa7938]

Easy to say for you, but u do not know the reason some people are desperate for a loan! It could be the medical costs or someone lost a job, etc etc! No all loans are superfluous or just a need for an instant gratification!

[@Canttouchthis04]

Some people get into these situations because they got royally screwed a few times in their lives, sometimes due to actions that are completely their fault, sometimes due to circumstances that aren't their fault and are very unfair. Some people get into them because they are horribly irresponsible. There are people who made some mistakes when they turned 18 or 19 and didn't truly realize the repercussions of being irresponsible with their credit. By the time they do realize, they are screwed and in a very deep hole that can be extremely difficult to get out of. It can take years and years to get out of the situation, and in the meantime something else bad happens and hurts their financials and forces them into a situation where they really need money and have nowhere else to turn. Then they screw themselves even harder by taking money that they can't pay back within the set terms, and it becomes a vicious cycle. These types of places can be useful to certain people in certain situations, but more often than not people who can't afford it end up using it.

[@TomsLife9]

@@lenitaa7938 but when you go into a bank and ask for a loan, they will interview you and inquire about what it is for and evaluate your ability to pay. so that sort of information should be on the table with the lender

[@allisonrae4828]

The big 5 - you guys are the BIGGEST crooks right behind these guys. Banks can go to hell.

[@mam362]

at some point the consumer needs to take some accountability

[@AndrewBrowner]

yeah.. and that point is in the rear view mirror no ones giving out anything for free no matter what loan or financial decision youre looking into you should be continuously questioning why the seller is giving you a deal or certain terms or offers.. its never to save you money or get you the best deal... cant imagine what some people are paying in car loan interest on used junk

[@jamesbyerly766]

For sure. Its both at the end of the day. Predators and sheep. Neither should apologize for what they are, but they definitely should admit to it.

[@lagon7830]

Agreed. It's on the consumer to run the numbers and determine whether they can afford the loan. The problem is people these days cannot manage money. If you need a car for work, you figure something out until you can either get a reasonable loan from a bank, or you can buy a cheap craigslist car for a couple thousand. From what I've seen, the people who take out bad loans are often young adults who blow their money. It's often the people who go out to the club and spend $10/drink. It's often the people who have the latest iphone. It's often the people driving brand new cars. TLDR: Consumers should manage their money and know what they can afford. This company is compliant with the law and therefore cannot be blamed for poor decision making by the consumer.

[@atomicgiraffe250]

$5000 over 36 months at 46.96% requires a payment of $261 a month. Interest paid out over the life of the loan totals approximately $4406. We really need to start requiring personal finance classes in school....

[@decached]

I'm sure people study compound interest and that should be enough, but people need to learn common sense.

[@jaybefaulky4902]

..or just use some cool software,,lol

[@cartoonjunkie7411]

"We really need to start requiring personal finance classes in school...." - Could not agree more

[@alecnolastname4362]

@@jaybefaulky4902 Sigh

[@alecnolastname4362]

@@cartoonjunkie7411 how about we fund public schools so people know how to add and subtract efficiently, this isn't even complicated mathematics. Real quick off the top of your head how many grams is .13lbs?

[@gordie727]

I started an application for a loan from these guys. They literally called and texted me over 20 times a day, even though I cancelled the application and threatened to contact the police.

[@lenitaa7938]

Good for you! Bravo!

[@TriniCrew]

@Alpha male feminist Yes they will because it is illegal. I use to be a telemarketer for over 8 years Any Canadian telemarketing company has a don't call option, If you receive a call from any company to a point of vexing you, simply ask to be placed on their DO NOT CALL LIST

[@yourworstnightmare7343]

I get texts from them to "complete your application for your *insert obscene amount of money here* loan" or "you have been accepted for a loan from *loan company name* follow the link to complete application...I dont know if it's their way of marketing or if someone is using my number for them but it's always addressed to an andrew but it is absolutley relentless from different loan places.

[@bottledoo3639]

Wight your story into mr nightmare

[@pinkgal206]

Lol

[@jkk20]

don`t ask for a loan if you are allready strangled by bills. seriously,it is common sense.

[@Jside68]

Don't ask for a loan period, if you need a loan, either you live beyond your mean or you don't need whaterver you want to buy

[@jkk20]

+Jeremy Cote loans done correctly can help you out. but most people have not invested in income generating assets and have loans to help consume more useless crap. but with asset generating income,one can more easily plan ahead of time to make certain loans or line of credit beneficial

[@cidb.212]

@Olga Williams I agree! I'm tired of seeing people crying poor but they buy more house than they can handle, have pets and too much stuff, go to Tim Horton's twice a day, and misuse their credit cards. Blaming the credit companies is basically admitting that you're irresponsible. This, of course, doesn't apply to real poor people.

[@terrencewimberly798]

If it sounds too good to be true , it probably is.

[@inhawaii4941]

The only loan you should ever consider is for a home other than that don't

[@MsJuliab14]

I agree that these companies are praying on poor people and need to be regulated but they weren't really concealing anything. The reps clearly stated $375 for 36 months. That is clearly $13,500. Come on.

[@lenitaa7938]

Julia Baldwin It was actually more.. with Coverage!!

[@lillyie]

it's just people who just ride on the scam train without understanding how the loan works. it's like getting a new video game, but you decided to skip the tutorial and then you complain about a certain mechanic of a game being unfair.

[@rachelgee9954]

they can keep praying over poor people, that is fine. They should not be PREYING on poor people.

[@jayit6851]

It's not "clearly" $13,500 if you're not particularly good with number in your head and don't use a calculator.

[@newtonraymond77]

@@rachelgee9954 you're a savage lol

[@DisturbedRocks]

How do you not realize that 365 for 36 months mean $13000+ for a $5000 loan? Are people really that stupid?

[@monera9675]

DisturbedRocks31 .... ok so 60% interested rate... that around 10000, + 4000 dollars for insurance coverage.. Yeah Seem legit.

[@DisturbedRocks]

Monera96 huh? I never said it's fair but people who are really affected by this are the ones who go to these people thinking they're buying a car/house (where overpaying is not THAT bad). It's a loan, you shouldn't be paying > 2x the original loan!

[@systematic101]

DisturbedRocks31 Because when I was in high school math was only required to grade 10 but English was required to grade 12 + 1 more class. I only have up to grade 10 English but I took 7 math classes. I can't believe how many people don't understand interest. I've helped 2 friends simply shift around how their money was being used and eliminated their debt in just over 1 year and they can't believe the amount of money they have left over from their paychecks now.

[@DisturbedRocks]

systematic101 Wow, I didn't know that.. but even then, if you borrow X amount of money and someone asks you back 2X the money, even elementary math student should know it's a bad deal..!

[@irwin770]

Same as what i was thinking. People just need to multiply 375$ to 36 and realize they will be paying over 5k. If its too "easy" there usually is something too fishy about it. Their website is just confusing, even to the point as compare themselves to a credit card debt.

[@DaLizMs]

You would get better rates getting a loan from the Hells Angels.

[@user-zq1lb3lx4m]

The Hell's Angels actually have very competitive rates...

[@alecnolastname4362]

And at the very least you can just get high off of what they loan you, but thats a horrible business model.

[@stevethea5250]

@@user-zq1lb3lx4m Lexar 8GB JumpDrive V20 USB 3 Pack LJDV20-8GBABANZ3 ZOOM 8GB USB flash drive comes in pack of 3 with write-on lables. Each drive comes with LED activity light which blinks during data transfer. Compatible with PC and Mac systems

[@user-zq1lb3lx4m]

@@stevethea5250 that's exactly what I was looking for! Do you accept best buy gift cards?

[@stevethea5250]

@@alecnolastname4362 same sham ump that called out NK for a bloody hand against Nadal? now called raonic for 'delaying' even when helicopter noise during his serve. secretly playing favourites, my bet Djoko will win.

[@thequietonesometimes6415]

I blame the Canadian Government for allowing these companies to charge 59.78 interest. If they charge 60% it is illegal. So they come just under that number. What could possibly justify 59% interest. It's sickening the way they are talking advantage of people who probably already have financial troubles. That's why they went to Easy Financial. .

[@janjanbeckham8]

alberto ciulini 'Taking Advantage' ? These people are ungrateful, they were told their monthly repayments and now when it's time to pay back, all the accusations come out.

[@thequietonesometimes6415]

Yes I agree with you. Once they have signed up. Of course you must pay it back. But the point I was trying to make. Is the Interest rate shouldn't be that high.59.78 PERCENT?? If they charged 60 percent. That would be breaking the Law. So they come just under. To keep it legal!!

[@lenitaa7938]

janjanbeckham8 'Ungrateful'? You are harsh! You have no clue of their circumatances! It is also known that people do not think straight or well while under severe financial pressure when having to seek a loan.. all reason and math go out of the window! They need to bring another person with them who is cool under pressure and helps them to understand the ramifications!

[@waterbottle4782]

I blame the banks that own this company.

[@kennedyk7339]

alberto ciulini well then where do you draw the line? If 59% is now criminal, then they’ll just charge 58.78. It’d never end. I’m not saying it’s right but what can the government really do?

[@dime_life4768]

the problem is most people will do anything when in need. doesnt matter how smart u are, if u need help and there is no where to look .You get a loan

[@owakurucci2988]

You could build up some emergency funds instead of getting fancy furniture, cars, or vacation if you are smart. Not 100% but this way you would be able to avoid getting loans in most cases.

[@gomezsamir]

In Quebec, it's maximum 35% interest rate otherwise you're a criminal

[@OhWanya]

True got a fairstone loan from Corbeil and I regret it so much but had too 😢

[@AcuraAddicted]

Oh, I've been there. And at no point have I or do I blame these companies. It's a completely personal responsibility of whoever takes this loan. It's a part of financial education. Just know there are legal mechanisms to deal with unmanageable debt: consumer proposals and bancruptcy. Yes, it's shameful, demeaning, depressing, frustrating and even unbearable at times, but it's manageable. I've been able to overcome this, so anyone else can, too.

[@happinesstolerant]

Tip to live by: stop trying to spend what you dont have and live within your means.

[@derinaries]

Or better yet, BELOW your means.

[@quickguesswho]

They tell you there going to screw you with interest and people still say yes, thats there fought... if a bank isnt gonna give you a loan thats the 1st indicator you're not bankable...

[@AmberMcQuaker]

Loan providers are scum, they prey on desperate people who are struggling to afford the basic necessitys. Plus EasyFinancial will make you take a loan higher than what you want/need.

[@deena310]

Thanks a billion for this video. I was almost in it. Thanks again. Deena

[@athenajasmyn8171]

To the people who are quick to call the other folks idiotic or greedy or whatever else, it's rather annoying because you don't know what kind of circumstance led these folks to these lenders in the first place. Everyone is one major or minor life circumstance away from being financially in trouble. Yes, if they KNEW how much the loan would cost them, they may STILL go ahead, because of an emergency, loss of job, etc. that needs to be addressed. People should think twice before passing all these condescending comments before they wind up in a similar situation.

[@sammiemcnamara5305]

I agree Athena. I was a working single mom making minimum wage and barely able to afford the tiny 1 bedroom apartment I shared with my 4 year old son back in 2012. I met a man online in SL one night and we dated in the virtual world for over 2 years before he asked me to marry him. The real problem was he was unemployed at the time and living in the UK and I live in Canada. But what wouldn't a person do for love and the chance for true happiness right?. I had poor credit and a minimal income so easy financial was the only place that would consider lending to me at the time and the max they would give me was 3K.( just enough to be able to afford the round trip plane tickets) so even though the insane interest rate was clearly stated I signed on the dotted line and bought the tickets to bring my finance over to Canada. We paid the jacked up fees faithfully for a few years and by then my credit had improved enough that I was able to get a second loan with a reasonable interest rate and pay off the balance so now our monthly payments are manageable. Yes it was extortionate for a while but I think spending the last 5 years with the love of my life and our daughter who was born a year after my now husband moved over to Canada, plus my son finally having a good father figure in his life has been well worth the cost. Not to mention the added bonus of having the payments we made all that time help to improve my poor credit score and open up our options a bit for any future loans we need.t I can testify to the fact that even though I believe their accepting me as a client was probably based on a predatory and greedy business strategy it IS possible for the consumer to get the better end of the deal. It's just a matter of going into the deal with your eyes wide open and only signing that dotted line if you would pay 4 times as much for what you're getting out of deal. Because make no mistake you WILL end up paying back at least 4 times as much as what they give you. Me, I have no regrets , and I know my 4 year old daughter who wouldn't be here today if I hadn't taken the risk feels the same. Her name is Athena too by the way :)

[@jeiger]

I don't agree with this type of lending, but I would be interested to see CBC do a episode about deadbeat borrowers as well.

[@MC-mh2ju]

Stephen They did, now everyone hates me.

[@reneeleese]

Exactly!, I don’t get why these people are getting pitied. How much extra do things cost because of people walking away from debts? Who makes huge financial decisions without knowing the terms? It frustrates me so much I believe in a free market, sink or swim. Companies should be able to offer whatever they want and if someone is dumb enough or greedy enough to take it- well that’s what a free market is. And the rates are so high because of the group of borrowers being so high risk, they need to cover the people who don’t pay and I assume that’s plenty.

[@TomsLife9]

@Alpha male feminist good info!

[@TomsLife9]

@@reneeleese I agree 100%. let the free market decide. if everyone hates these businesses so much, we have the power to put them out of business by simply not using them.

[@reneeleese]

AirSoftMaverick3232 exactly, you vote with your Dollar!

[@JAchica11]

The problem is not really the loan sharks, the real problem is our greed and wanting instant gratification all the time.

[@zaraopeace8840]

JAchica11 U don't know her situation

[@ThatJennings]

Both are problems. End of story.

[@tomnelson203]

Are you invested in this company??

[@stanley19430]

Tom Nelson Are you invested in common sense? If you got no money to pay the bill, your solution shouldnt be going in debt. Canada has great health care. She literally have no excuse. If she is in U.S. and facing health issues, that is a different matter.

[@leonoratesoro2586]

I don't think it's greed. They need the money to pay bills that's all

[@eddiebernays514]

why was the fact that she has children relevant to the situation?

[@jojotheoj]

Because kids don’t deserve to be put through this crap.

[@hottuna2006]

Single moms, blacks, gays, disabled, etc. need their victimhood recognized.

[@eddiebernays514]

@@jojotheoj then the parent shouldn't put the child through that.

[@erxs]

@@hottuna2006 cringe.

[@CSCS20]

@@hottuna2006 true say it brother

[@vturner]

gave them a 10,000$ draft yesterday 12/31/20 as a payout amount , im finally free 🎉 Happy New year

[@casey6556]

How do companies get away with this? Easy: combination of the fact that the poorest, most desperate people needing these loans are least likely to have good financial literacy; and that businesses don't need to be ethical to make a profit. And for those saying "oh, look at such and such, they're obviously wasting money", two things. One, as a person who has experienced poverty personally, the occasional "treat" (a Timmies coffee for example) is nice. Poor people are humans too, and I'd best most people complaining about their "luxury goods" would feel very differently if forced to stick to their own idea of what poor people "should" eat. Second, in many cases people that need these loans are doing fine financially before a sudden incident (such as illness requiring one spouse in full time treatment and another quitting their job to care for them) topples everything.

[@Selfcontortion]

Casey Broughton Someone that actually sounds like a decent person in the comment section? I'm shocked.

[@brandell4638]

Yes; Casey I agree. Sounds like you are doing ok now. Companies are preying on the desperation and fear of people. The truth is some people would agree to anything for a loan. Imagine if there weren't limits these places can charge. The only thing missing is sending around enforcers to break your legs for not paying....

[@rachelgee9954]

One of my friends gets food from the food bank and church and she gets better groceries than a lot of people. If you are on assistance and not working you get around $200 for food per person each month, also a lot of food banks will say if you make $20,000 or less they will give you a turkey, chicken, 10lb bag potatoes, carrots everything for your holiday meal, as long as you apply in advance.

[@rachelgee9954]

@@BirdNerd52 you can get some food for free if you go to many community places-even the university has a food help for students right on campus. And if you are that desperate for food go to the grocery store or costco and eat a lot of samples...

[@rachelgee9954]

@@BirdNerd52 You can get a lot of free food and even alcohol free, pretty much every day if you live in a bigger city. I can't get out much but used to get free movie tickets, alcohol and wine at gallery or art shows, pastries and tea at the local bakery that does are events (and puts out trays of free pastries all night). The local grocer if you go after 8pm they will give you a deal on the prepared foods so they do not have to package and label them. I could get by spending around $30 a week on amazing food.

[@AAA11546]

47% interest rate is sickening! And paying off a $5k loan for 3 years wow

[@Sean-mc4iq]

Took a so-called numbers expert to calculate $375*36 lol

[@AndrewBrowner]

someone who can punch those numbers into a calculator is in the top 20% of mathematics skill nation wide... only question half the people in those places ask is when theyll get the money

[@sovitaseng5519]

The guy was accounting for TVM otherwise it’ll be $8k+ also I’m sure he was there more to calculate the APR/EAR comparison to refer to the legality of it all.

[@brownmsoe]

The US has had its problems with these types of companies. I knew as a kid in grade school, that these places seemed off. The big one that was near me as a child was called "Check 'n' to Cash"

[@Kona138]

It should be illegal for anything over 15-20%

[@erinzilkie414]

+VTL It should be illegal to not pay your bills ..if you cant go to your bank..you are high risk and high risk customers shoudlnt have access to prime rates because thier default rate is too high. If you dont want to pay high intrest, improve your credit score and problem is solved

[@Kona138]

Erin Zilkie I do agree with you, my issue is that these businesses prey on the uneducated and the desperate. I don't think its fair to put someone in a position where the interest is so high the principal is almost impossible to pay off. I know someone who just got a laptop from EasyHome and it's 25$ a week for FOUR YEARS. That is robbery on a laptop that barely costs 1500$ new!

[@nothing-wp9ti]

hard limits on usury rates don't work because they don't take into account the inflation rate or the market rate on other debt, like government bonds for example

[@thagreatfrank3071]

Erin Zilkie You’ve got all the answers I can’t wait till pay like you fall on hard times then realize what other people are going through!

[@lenitaa7938]

ThaGreaT FranK.. Excellent answer!

[@Khaltazar]

The people getting the loans should have stayed in school. $375 x 36 months is $13,500 for a $5,000 loan meaning you are paying $8,500 extra to get the loan. All these people think about is money now. They don't get the fact that if they get a loan they are INCREASING their monthly expenses...

[@Khaltazar]

+Khaltazar "They don't deserve to make that much money." Well, you don't deserve to get $5,000 in cash. I'm not defending them or anything, but the customers need to learn math and risk before they go for the easy money.

[@tl11rj7x]

but what if they are using the loans to help pay for their school tuition lol

[@getrolli469]

wow

[@Acidfunkish]

+tl11rj7x In Canada, that makes absolutely no sense. If you go to your school and talk to the financial aid office, they will absolutely help you, because they want you to go to school. There are often some basic stipulations, and I believe you still have to pay if you file for bankruptcy (could be wrong about that, it's been a few years), but it's one of the lowest interest loans you can get in the entirety of Canada. And I believe the debt is completely wiped if you still can't pay it off after 20 years. There is absolutely no reason to pay for school with payday loans. None.

[@tl11rj7x]

LittleMaliceManny cool I'm American and I know sooo many students that have taken out $30000 loans for just One semester of school its crazy. so I thought they do that in Canada too.

[@FukaiKokoro]

The interest rate legally needs to be brought down to max 25%. 60% is a pretty high threshold.

[@Canttouchthis04]

I'm surprised it is so high in Canada, it is 29.99% here in the US.

[@MarkSkids]

Go to a bank for a loan then.

[@juanshaftpatel7488]

how about the person takes responsibility

[@wendellgreenidge3362]

Fukai Kokoro here it’s 600%

[@wendellgreenidge3362]

Canttouchthis04 that’s a lie, it’s higher than 29.9% here in the USA

[@lordstevewilson1331]

Here in uk it's called a payday loan and it's under £2500 for less than 1 month, but here is the stinger. some are Over 4000% and most are over 1000%. and no I have not added 000s to the end myself.

[@Acidfunkish]

Yeah, they're all over the place, and they *all* charge around 600% or far, far more. :/ Many people get stuck and have to take out a new loan every month or paycheque, just to pay their bills, including the payday loans. And even if you can't pay, or have to file bankruptcy, they'll just sell your debt to a debt collecting agency that often use criminal tactics to try to collect illegal debts. It's a messy industry that seems to primarily target people who can't afford the interest rates.

[@lifeofabachelor8547]

Steve W in canada we have payday loans. this is not a payday loan. it is like a loan you would get from a bank just high interest rates and high insurance rates

[@AAA11546]

Wait wtf? The *insurance* on a $5000 loan costs $4000 over 3 years!?!?!??!?! And add the 60% interest rate on top. oh my god.

[@trevorangus233]

They also add insurance and add another big lump and don't tell you. My son borrowed 3000 and the insurance alone was $1500

[@miraclesawait8861]

Lost almost $18,000 on a $2500 consolidation loan. They made it easy gave me what I needed in a hard time and when the banks said no. Now 5 years later I’m just finishing a bankruptcy because of them

[@AdriannaJemielita]

it would be better if market place would teach people to look how much is interest rate and what it means in $. lots of people just need money now, so they don't pay attention to small print. instead talking about one financial company teach us how to spot important facts.

[@GEES44DC]

36 months for a $5000 loan? Are people insane?

[@NomadicBC]

I love how the first ad that pops up near the end of the video is for fairstone financial, another high interest lender. WTF!!

[@andyoldham1702]

Well I sure am glad that somebody on CBC staff eventually figured out to multiply $375 by 36 to get the grand sum of $13500. I was getting quite concerned. I know Canadians are being dumbed-down in their schools, like every other nation, but losing the ability to figure that out was quite alarming -- bad enough that it took them until the end of the show to get it. I knew the total 5 seconds after the terms were stated. but I haven't relied solely on the school system for education.

[@jeffw1267]

One could average the estimates of 300 x 30 and 400 x 40 to get an average of $12,500. This should take about five seconds to do mentally, and of course we all have calcuators on our phones now. There's no excuse for not figuring out the total immediately. Also: how does a poor person make payments of $375/mo? My new car payment is less than that!

[@owakurucci2988]

I think, people tend to think "I can afford this and that because my parents could afford them". However, we need to understand and accept the fact that the middleclass today can no longer afford what the middleclass 30 years ago could afford. It seems unfair and sad I have the same job as my dad's and I can't afford what he could afford, but that's the reality. People go debt when they don't understand that and try to copy what their parents did. It seems to me these shady businesses take advantage of that.

[@zunaidkajee4540]

you borrow from Paul to pay Peter. If you are battling to pay Utility Bill's, can you not make payment arrangements with the service provider?

[@attomicchicken]

This reminds me of a story I read online. The girl came out screaming from the bank because "no one told her" that she had to pay the things she bought on credit

[@logical1291]

That interest is way too high for sure. It would be more understandable if 22%. These customers are typically high risk people with terrible credit. Banks don’t even want to do business with them. Hard situation but if you can and are working start repairing your credit. Take care of your defaulted or late debts. It can be done on your own. It just takes communication, patience and sacrifice.

[@melleblanc9482]

Helen's story: The BANK turned her down, and they said YES. AND if she couldn't afford the payments, she shouldn't have gotten the loan, nor should she have gotten the increase. She approached them, and she agreed to everything. She could've read the papers before signing and was not obligated to get the loan. Don't blame any lender for you not being able to manage your own finances.

[@christopherbonanno1120]

The interest rate is a lot however people who need. Cash now and can’t get a conventional loan this is there option it’s this price or no money maby instead of becoming a person in this situation be better with your money and I’m tired of hearing excuses prices go up but pay don’t. Ok. Well we know how the world works so. Save your money don’t waste it. Look a head. This is the real problem. Not the loan company And if you don’t agree with the interest rate say no and walk away so I don’t really see why this is a issue. It’s just a lazy person complaining about there life choices. And for people who say things pop up in life yes they do. That is why you save and work hard. That simple

[@Xachremos]

"Cost of living goes up but wages dont" = I've held the same low skill job for 20 years why should I put in effort to change my situation

[@DarkStarAZ]

Q: "Whats the difference between Easy Financial and a Loan Shark? A: "Loan Sharks give better interest"

[@miker6570]

Most high interest credit cards are in the 25% area. If you are signing up for a loan in the 45% area that should be a red flag that you shouldn't sign on the dotted line at all.

[@nodsib]

I have a rule, if I ever hear the word “easy” from someone selling a product or service I run the other way, it always means I’m going to have to pay a big premium that makes it an easy choice to sell to me. “Easy Financial”, “Easy Home”, Those “It’s easy to get into a Ford” commercials and any ad that says something like “We make buying easy!”. Screw that, I’m shopping around and not paying extra for easy.

[@simplyclean4907]

I pay 4% annual pecent rate.. for my car and easy loan charges 59% dayuuumm

[@nathanrichardson5675]

I paid 28% Original loan amount: $2600.0 Payment Frequency: BIWEEKLY Re-occurring Payment Amount: $92.56 Total Cost = $732.16

[@boogeyman1967]

And make sure you don't default on the loan either. Soon after I did that, I began getting calls from random places about 5 - 10 PER DAY, at the most inopportune times. Seems like they sell your number to random foreign companies (chinese) to irritate you for not paying their ridiculous rates. Been getting these types of calls going on 3 years now.

[@AroundIndiana]

This happens with a lot of small car dealers too. They prey on people who have bad credit and they end up paying $15000 for a car worth $7000 with their outrageous finance rates. A lot of people just assume they can't get a normal legitimate loan, but it never hurts to try before going straight to the loan sharks.

[@jeffw1267]

Banks can sometimes refer you even if you have lousy credit. The problem is that some people who have bad credit are embarrassed and don't want to face people in the bank.

[@thetriggerhappypwner]

In the UK, where I live, we call companies like these "payday loan sharks"!

[@carultch]

What do they call them in landlocked countries like Switzerland? Loan Snakes?

[@edwardlewis1963]

wait; if the interest rate is already at 59%, and then on top of that they add in the insurance payment; then effectively they have crossed to 60% criminal limit.

[@Guntank]

Even just paying back the loan is a struggle. If it becomes obvious you're trying to completely pay the loan off, they will claim they never received the payment and the payment is always stuck, call the bank, etc. Anything to stall. They want to keep taking as much interest from you as possible.

[@Eagleone7]

Is it legal for a manager of Easy Financial to come to your house to collect twice?

[@Andy-xm3ui]

I took out one of those loans as a kid. But I only did it to establish a credit rating and it was for only a grand.

[@Eagleone7]

Is it legal for a manager at easy financial to come to your residence to try and collect a payment?

[@Eagleone7]

This happened to me twice and my landlord was a witness to the 1st visit.

[@rocko2268]

Really takes the steam out of my empathy when you have a French door fridge and a Keurig. Her appliances are nicer than mine!

[@PhuongNguyen-cp7gd]

And I can't even believe that she took a SECOND loan 😑!

[@toniacampbell6384]

wouldn't doubt if that loan she got paid for that crap. She had nice new appliances but broken blinds lol can't buy class.

[@bo5824]

I think the issue that gets missed is money management. If we could manage money better as a people these places wouldnt be burying people

[@jeremyrowe8224]

CBC doesn't want to do a story on how anyone doesn't have a good job because they didnt work hard in school, or blew all their money on booze/smokes. They rather blame a business

[@rachelgee9954]

You read the papers that you signed, then signed them. If you did not understand what you signed then you need to sign over your power of attorney to the state or your family so they can make those decisions for you. By "the state" I mean the government where you live or those legal authorities.

[@johnhennessy4422]

Can Helen not understand basic math? I signed up for an easy financial loan as well (I was desperate) but at least I understood up front that I was being robbed, i also made sure that insurance etc was not included (still paying like 46% interest overall even without)

[@rmd8873]

In South Africa, under the surety laws, a maximum % was applied. When I lived there it was 32%. No loan issuing organisation was allowed to charge more! Should be the same law applied in every civilised country, ie, everywhere.

[@willysteck77]

Hi everyone I have a loan with them and they haven't taken one payment from my account and i continuously call to figure out why and I get some bs reason why not and it shows as a missed payment even though I'm trying to pay them!

[@adel-711]

Why the Canadian government is allowing those crooks to operate? I am Canadian and I really like to know . Does the Canadian government cares about us Canadians or not ?

[@donaldfredrichsen5851]

It's legal loansharking (barely legal)

[@scoreme1968]

Let me add even when employees feel moraly wrong about this and they feel guilty tells you there is something wrong.

[@ckbsmall]

Gеt рaуdау lоаns fаst hеrе => twitter.com/2b221f57eb75c29b8/status/809350192776347648 Аrе Еasу Finanсiаl s instаllmеnt lоаns а gооd dеаl CBC Мааrkеtplасе

[@paolasoba2380]

Gᴇᴛ Pᴀʏᴅᴀʏ Lᴏᴀɴs Fᴀsᴛ ᴀᴛ: twitter.com/eb5e2f30b3a81792b/status/822777246943326208 Аreеe Easу Finаnсciаl s installment lоаns а gоod dеаl CBC Mаrketрlасссе

[@thagreatfrank3071]

ckbsmall Payday loans are just as bad & very hard to get out of that cycle once you get trapped in!!

[@troyzieman7177]

Look even if you cant figure out exactly you know that the annual rate being charged. People going to payday loans probably didn't start there . Most likely they started at their financial institution, were turned down and went bottom trolling afterwards. I have gotten myself into financial trouble so I not being judgemental but prevention is you best defence. Get great st doing a budget and sticking to it. Emergencies will come up but you can manage the day to day without relying constantly on payday loans

[@oliman555]

Here's a tip - Don't buy what you can't afford.

[@TriniCrew]

it's not that simple, If you have money to buy many things outright that's great but it does not help your credit. Should you require a big loan down the road, without building a great score with a diversified credit portfolio it screws you over as well.

[@mam362]

what do you do if you are dirt poor for reasons out of your control?

[@Beastofcookies]

Whats scary is these types of businesses are popping up everywhere now. On my drive home I can spot almost a dozen...

[@sjbobkins9442]

Go Lady! All the rooked payday, title, loan companies are obscene ripoffs.

[@FenixDelta753]

Yea they are. I can't believe they're legal in Canada. I mean in the US, were behind and run by big business because one party refuses to upset their far right donors so we lag behind Canada with things like this. Go Canada!

[@systematic101]

Jordan Greene because they're not lying. They told these people up front what it will cost and they agreed.

[@FenixDelta753]

systematic101 I think they only told them because they asked. If they didn't ask like Im sure most of the dumb people dont, they wouldn't tell them any of the important stuff.. They just want their damn money and leave.

[@edumont88]

Jordan Greene no they are told the payments and interest rates. They have to by law. Keep assuming though lol.

[@jonathanbelanger6574]

I know someone who bought a 400$ computer from easy home , 2500$ and 3 years later it was paid off

[@AndrewBrowner]

is it that hard to open your phone/calculator and punch in the monthly payment by the number of months... is a pretty good ball park

[@gearhead5651]

At 11:46 shes asks how companys get away with it, quite simple. People are so focused on getting money cor what ever flashy new thing or to pay bilss they become more stupid and blind and sign on the line. If a bank turns you down then its a big sign your beyond broke and bigger problems are on the way if you borrow more money from someone else.

[@seeya205]

TiMn8eR911 Exactly. Like Helen said, every year, it's harder and harder to keep up with the bills. Well then you get a second job or a higher paying job OR you lower your expenses like getting a cheaper home. Clearly she spends more than her income can support. Gotta like her fancy coffee maker and her stainless steel appliances! Some people want the best of everything but can't afford the best of everything!

[@gearhead5651]

seeya205 i agree, and in comes the vultures like easy financial to paint a picture of paradise and suck people in that dont think things out. Damb fine print. Cant recall when i cut my credit card up, think about 10 years ago, best thing i ever did aside from buying my home 2 years prior.

[@seeya205]

TiMn8eR911

[@JessicaAhibo]

EVERYBODY is doing this. Rent a Center, Payday Loans even cell phones carriers. Think about it you pay $29/month for your phone for two years = $696. That is crazy you could buy that same phone on amazon for $350 everyday and $175 at xmas season.

[@HenryTheBoilermaker3rdYear]

+Jessica Ahibo But what if they need it now and they don't have the money? See you don't get it.

[@GEES44DC]

+Henry “Adda” Chaisritha You be smart. You don't walk into a criminal's living room and arrange a deal.

[@bmw803]

Then buy a $90 phone and save the money to buy the one that cost more, which you probably don't really need in the first place.

[@Canttouchthis04]

The cell phone carriers are charging people the retail price of the phone, not the same thing. The average price of a brand new flagship smartphone is about $650, and actually has started getting even higher than that. When you finance a phone through a carrier you aren't paying any interest. That isn't the same thing as Rent A Center or payday loan places.

[@cartoonjunkie7411]

Many years ago I had a Canadian Tire credit card and it had loan protection on it, at one point it was costing me 100 dollars a month (it was percentage based). I will NEVER get loan protection again.

[@haydenjdm3645]

How does a credit counselor negotiate down the interest to 10%? Is that something any customer with financial knowledge could do?

[@twinturbo3461]

If your going to one of these places (and they're all the same - Money Mart, Cash Money, Easy Financial) .. you are on your last avenue and you only take a loan from these guys if you can pay it off within 3 months. They don't care if it takes you forever to pay it off, they're making money off your needing their money and that's their business.

[@dannyhughes4889]

'Cheap, affordable, easy'...great words and DANGER signals flashing very strongly.

[@aurum12hm70]

People get a high interest rate because they have a high credit risk aka more likely to default on loan because of missed payment. It's unfair but these types of places are not hiding any info before handing out cash, and it's not hard to figure out the total cost.

[@goodtimes474]

the same thing happened to me in fine print it said you could after 15 days cancel the coverage but the person who gave the loan said we would not have given me as much if didn't take the coverage but was not really told about it. I would rather have no money then get money from these places.

[@larryfinklestein4480]

I heard this radio commercial with Hulk Hogan for a loan "as low as $7 a day for $2600". I think it said the amount is then paid over 3 years. So that approx $2555 a year times 3 years = 7665. So 7665 - 2600 = 5065 you pay on a $2600 loan. You really have to do the math on this stuff.

[@liamwelsh5565]

I don't understand how people don't realize how much interest they are paying. They are told the extremely high rate and more importantly the monthly payment. Interest rates are a little bit harder to use in order to calculate how much interest you're paying because it's compounded. But if you are told the monthly payment and the length of the loan, how could someone not figure out that $335/month over 3 years is like 13 grand for a $5000 loan.

[@c0r5e]

Even if they charged 46% its already a lot in the first place.

[@cartoonjunkie7411]

agreed - that is insane

[@AdeptPaladin]

EasyFinancial is a high-risk lender, though. They deal with those with low credit scores, outstanding collections matters - the kinds of people whom a traditional lender isn’t possible. The interest rates are high because the risk of default is high.

[@JOSH-bx5wp]

i took a loan from them .my intrest rate was 19.99% after my first loan well when the banks say no at times when times are tough there aint no media to help you out. you borrow money they aint for charity you gotta pay them the intretests and in my case i borrow it for business and thats how it works

[@annagoryunova5651]

They max your debt service ratio so any time you go apply for any other loan you might actually need you can’t get anything with other reputable banks.

[@lbuss2033]

"we're on our way to a business that doesn't want to speak with us" haha the marketplace mantra

[@chaoticconjuring]

59%?? That’s nothing!! There are title loan companies like LoanMax in the US that charge 300% annually! The average annual payday loan interest is 398% but in some states goes to nearly 700%!

[@benandnatalie3630]

With those high bills, someone would have to file for bankruptcy. But, 59.80% Interest with another 0.20% it would reach the criminal interest mark

[@bazerra854]

Love this marketplace Program you guys are best!!!

[@spicykielbasa5305]

Harley Davidson tried to give me 18% APR when I had over 700 credit score. I went to a private credit union and got 1.49% APR. Harley Davidson financial is a crook too!

[@Xachremos]

Of course they did. Harley Davidson is a dying brand. All their riders are dying off and no one can afford, or wants a Harley anymore. Give it a few years and they won't sell bikes anymore.

[@caleblagrange7164]

The poorer someone is the fewer economic opportunities they have. It's simple: pay day loans and credit cards feed on the poor. Even if it's partially the consumer's fault, it's also true that they have fewer other options.

[@pilsenmexican]

I believe most people get approved because in the end you are obligated to pay with interest no matter what. So not paying interest is not an option.

[@dervakommtvonhinten517]

well its pretty drastic but as long as they are up front about how much interest rate you will have to pay annually without any fineprint i feel like its ok to charge whatever you want

[@WolfFreeBlue]

Always read the fine print. For these people, the interest rates info is in there; it's really small. If you don't understand interest rates, talk to a dependable financial advisor. Their interest rates are the same as PayDay Advance places and Rent To Own (if you rent it) and especially if you do cash advance on your credit card; don't ever do that, okay?

[@TravelChannelOne]

This is the same thing with the banking system it's just legal with the big banks. Amortization loans are payday loans all dressed up with lower 6% when you actually pay 120%

[@mrthanks1]

For the $5000 loan for 36 months, you will paying $13500 by the time you're done with them. That's $8500 interest and fees. That's crazy wow

[@micmica1827]

Our governments must have FULL CONTROL over our travel insurance (the same as Medicare) and the same must be applied to borrowing money. The maximum interest rate must be less than 10%.

[@kylehartman393]

It’s high risk, that’s why the interest rate is so high. Banks turn them down for a reason. These are extremely risky loans requiring a high interest rate. The lender told them the payments and the terms.

[@FirstLast-kb7kn]

When I used the formula for Effective Annual Rate, I got about 59.45%. I used the 46.96% over a period of 36 months. For this, I converted the percent to a decimal: (1-(.4696/36))^(36)-1. I entered this into a calculator and got approximately .5945 which is 59.45%. If I am doing something wrong was is it, because I did not get 59.8%?

[@bingotheone-eyedwondercat6229]

These companies try hard to keep the actual terms hidden. If consumers knew just how much their easy loan will cost they might not sign up. Of coyrse, consumers must do their homework before getting one of these loans, but then again the loan companies aren't being truthful as to the hidden fees, sky high interest, etc. When salesmen get bonuses for getting consumers to sign up, there is a conflict of interest.

[@rodclark669]

I sold cars for many years and only one time did a girl's father have enough sense to multiply the payments x the number of months to arrive at how much his daughter would be paying in total. This is a product of our educational system. They teach us "crap" in high school, not how to manage money. Such a shame.

[@playboymaxim]

if you notice, most car ads don't even show the price of the car, just the monthly payments.They lure people in with that lower figure and they end up paying thousands above sticker or book value

[@Valdismith]

Same in Bulgaria, but what is more scary, from watching marketplace, I see so many fradulent schemes in various business areas, that it isn't any better than here in Bulgaria, even worse for some areas and technicians ordered repairs, and I always thought of Canada like that super safe, super protective of their citizens according to laws, that you must be pretty safe in a well arranged country. Well, I guess not really. Keep up the good work Marketplace.