The Department of Community and Government Services is reminding Nunavummiut that payday loans are "a very expensive way to borrow money," and companies that issue such loans should meet certain standards.
Payday loans are short-term with considerably higher interest rates than regular bank loans or lines of credit.
"High interest rates and potential additional fees make payday loans harder to pay back, which can increase financial difficulties and stress," the GN stated in a public service announcement on Friday morning.
When dealing with payday loan companies, the government advises that the following criteria be met:
-the business has a physical address, phone support or live chat
-it does not require money to be paid upfront, as origination fees should be paid from the loan account itself
-it does not stipulate how the loan funds can be spent
-it can be found on the Better Business Bureau’s listing of accredited payday companies in Canada.
For further 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.