News : Easy Payday Loans in Georgia

Interest to be cut on payday loans

July 16, 2008

There will be less of a price to pay for payday loans when provincial legislation puts a cap on interest rate loans this fall.

The provincial government has approved the move to set maximum interest rates for short-term loans.

"It's not an absolute cap. It says you can charge a certain amount for

certain sizes of loans," said Selinger. "I believe we've struck the balance between protecting consumers and having the short-term credit market available to them."

Local consumers say it's time for the government to put a stop to higher interest rates offered by lending companies.

"I think something should be done. It's just companies screwing them over and taking advantage of their situation. More people are taking out loans because of the high cost of living these days with gas prices what they are and everything. I think it's great that they're trying to put an end to it (high interest rates)," said Jamie Sokolowsky from Portage.

Selinger encourages people to find other sources of credit, such as their credit union or their bank, before they go to payday lenders. He believes, in most cases, they will get a better rate at a regular banking institution.

But consumers note there is a need for the payday companies for those who cannot get approved for credit at a regular institution.

Source : http://www.portagedailygraphic.com