Payday loans were a growing factor in personal insolvencies in Ontario for the sixth consecutive year in 2017, despite recent provincial regulatory changes to curb borrowing rates and improve disclosures by lenders.
A review of 3,500 insolvency cases by insolvency trustee firm Hoyes Michalos found 31 per cent of people who made insolvency filings in 2017 had payday loans as part of their debt load, up from 27 per cent in 2016 and 12 per cent in 2011.
Douglas Hoyes, insolvency trustee at Hoyes Michalos, said recent regulatory changes for payday loans have not prompted people to borrow less, and may be spurring more borrowing as interest rates decline because people can afford to carry larger loans.
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Read the full article at: https://www.theglobeandmail.com/report-on-business/ontario-insolvencies-see-rising-use-of-payday-loans/article37950877/
