RE: RE: RE: New Line of Credit We are saying the same thing. They have used auxillery fees (ie. bank card, insurance premium etc) to lift the amount they could charge per $100 loaned (based on Payday loan act). This is why Ontario is now looking to revoke their license. With the line of credit I believe they will still try to lift the amount they are able to charge (59% interest annually) by using the same auxillery fee trick. Its the only way they can maintain the same margin they are used to. The problem will be that they'll be more vexposed from a criminal code standpoint.
I cannot see the line of credit simply replacing the payday loan product at a similar profit margin. It also would involve a revamp of their infrastructure to move to these type of lending products now. I think its a con job for sure. Would that surprise you?