Payday Loans: the Cost of Being Poor

Dec 24, 2024

Donna Borden, an ACORN organizer and a victim of predatory lending practices, shares her harrowing experiences with payday loans. She discusses upcoming legal reforms to lower interest rates and the ongoing issues of hidden fees that keep borrowers trapped in debt. The conversation highlights the psychological toll of financial hardship, especially during the holidays, and urges the need for financial literacy and accountability. Borden advocates for community resources and regulatory changes to provide safer, fairer lending options for vulnerable consumers.

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Intro

00:00 • 2min

Understanding Payday Loans in Canada

02:02 • 5min

The Cycle of Deception: Payday Loans Exposed

06:46 • 5min

Exploitation and Mental Health During the Holidays

12:07 • 6min

The Payday Loan Predicament

18:16 • 8min

Exploring Alternatives to Payday Loans and Financial Regulations

26:06 • 3min

Starting January 1st, the criminal interest rate on predatory lending will be lowered, meaning it should be safer to take out payday and installment loans. But these businesses have a tendency to skirt the law, adding unexpected fees and insurance rates to keep borrowers in the hole.

Sam welcomes Donna Borden to the show - an organizer with ACORN. She’s been a victim to these loans, and is now fighting against them. Will the crackdown work and really help lower people’s payments? How can we make short term loans a real option for people struggling, without the sky-high payments?

Host: Sam Konnert

Credits: Aviva Lessard (Producer), Sam Konnert (Producer), Caleb Thompson (Audio Editor and Technical Producer), Max Collins (Director of Audio), Jesse Brown (Editor), Tony Wang (Artwork)

Guests: Donna Borden

Background reading:

Debt struggles spark concerns - Toronto Star
Anti-poverty advocates call payday lenders 'criminal,' urge feds to cap interest rates | CBC
New rules to curb predatory lending still leave many vulnerable - Globe and Mail
How a $200 payday loan cost over $31,000 - CBC Radio

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