RE:RE:RE:Mcreath on BNN just now alluding to an investigationTorontojay wrote: I've heard many times before about dropping the legal annual interest rate that could be lent to Canadian consumers which is currently at 60% to 40% or lower. It's been at 60% for a very long time now and perhaps the pandemic has brought the issue back into the spotlight. They are growing into secured forms of lending which is less risky and lower interest rates which is another growth driver for them.
I think these guys will be alright.
It's been 60% since the 70's back when interet rates were double digits and the max 60% or slightly less was justified as capital actual had a high cost to it. Today capital costs is measured in basis points, near zero so the max 60% is absurd in this context.
That being said come of the higher rates GSY charges can indeed be viewed as exhorbitent. Sure the risk is high but how much should be charged? Close to the max legal limit when your capital costs are near zero makes me unEASY. Granted their disclosure is quite clear, I hope this acquisition does indeed lower rates for consumers while at the same time allow our company to continue growing at a good clip.