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The actual arrangement is apparently legal.


Yes, I do believe it is ethical for banks or any other lender to refuse lending services to those unlikely to pay back the loan.
I have not heard any reports that they were refused banking services.
1. I'm glad you find it is legal.
2. Why would they go there if they were not declined by the banks? Just cause you don't hear things doesn't make it so.
 

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1. I'm glad you find it is legal.
2. Why would they go there if they were not declined by the banks? Just cause you don't hear things doesn't make it so.
1. It is currently legal, but it's really on the edge and I think this is a significant business risk.
- I think the rates they charge are criminal, which is the ethical issue

2.They were declined loans, because they shouldn't be taking out loans.
They weren't denied other services, that would be a concern.
 

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1. It is currently legal, but it's really on the edge and I think this is a significant business risk.
- I think the rates they charge are criminal, which is the ethical issue

2.They were declined loans, because they shouldn't be taking out loans.
They weren't denied other services, that would be a concern.
Obviously what you think should or should not be for other people is you personal opinion. You sound like you want a totalitarian nanny state.
 

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Obviously what you think should or should not be for other people is you personal opinion. You sound like you want a totalitarian nanny state.
I just identified that I think charging criminal interest rates is a significant business risk, and makes me question the ethics of those running the operation.

From the numbers alone, sure I'd buy this, but I think the risk is too high for me.

Enjoy.
 

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Nice jump today.
 

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Bad press for GoEasy.

More than 20 years ago I was looking to buy a rental. I was authorized for the max I could borrow from the bank but still needed more money. After cash advances from credit cards, I still needed more. Back in those days the super high interest rate firm was Household Finance. I borrowed from them at rates similar to those cited above and the deal went through. They were the only ones that would touch me. I ended up doing well on the rental and paid all my bills on time. I don't see anything amiss with adjusting interest rates according the the risk. I was a big risk and they took the risk; I compensated them by paying their rates. If they would have had nanny state do-gooders back then blocking the deal to save me from myself, the deal would not have gone through. I might then be poor and the do - gooders might then be wanting the government to pay for my rent and food. Why would anyone want a nanny state interfering with your own judgement and financial deals? They don't care about you, they only care about looking good to do-gooders. The nanny state do-gooders will never be satisficed. Even after they run every aspect of your life they will still want more power over you.
 

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Yes I'm still holding GSY.TO for the long term and I'm pretty sure it'll be an amazing investment.

I'm just wondering if such bad press can affect them if it gets on a political momentum or if such article pops once in a while and is forgotten as fast as it appeared.
 

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A senator has drawn up a bill to limit interest rates.

Easy Financial charges 49.9% interest. If the bill passes, these types of lenders would be impacted.

I would rather see the credit unions issuing small loans guaranteed by the government at a much lower rate.

Provide some competition for the alternative lenders and they will go away on their own.
 

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To my recollection all these outfits have had press like this previously.

Nothing wrong with the press noising about and seeing what's what. I like their investigations of used car dealers. repair shops and what not. Where would we be without a "free" press.

All the lenders, even the big banks. charge rates according to risk. Nothing amiss with that principle. That's part of what a credit rating is about. If the banks see too big a risk, why just say no. They want high quality low risk customers. That leaves an opening for higher risk lenders. My understanding is Go Easy helps people with no credit rating or poor credit rating get a higher rating thereby earning a lower interest rate. Besides loans, they are offering experience and learning which, if effective, can only strengthen the financial fabric of the country.

The do - gooders offer nothing but preventing the cat from sitting on the hot stove. No learning, no experience, just micromanaging.
 

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The alternative lenders would have a stronger argument if they were more transparent on their interest rates and lending practices.

Requiring someone to to sign up for expensive "disability" insurance that is full of disqualifications, isn't teaching anything.

Advertising low interest rates that they never give to anyone is misleading. Telling people they can re-apply at a lower rate after a year is a falsehood.

In any event, I wouldn't want to see the alternative lenders disappear without a replacement in place.

A government secured loan from a COOP or charitable organization could do a better job of "teaching" while helping the clients.

Governments have exclusive powers of collection, so the default risk is largely mitigated and they can charge a lower rate of interest.
 

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The alternative lenders would have a stronger argument if they were more transparent on their interest rates and lending practices.

Requiring someone to to sign up for expensive "disability" insurance that is full of disqualifications, isn't teaching anything.

Advertising low interest rates that they never give to anyone is misleading. Telling people they can re-apply at a lower rate after a year is a falsehood.

In any event, I wouldn't want to see the alternative lenders disappear without a replacement in place.

A government secured loan from a COOP or charitable organization could do a better job of "teaching" while helping the clients.

Governments have exclusive powers of collection, so the default risk is largely mitigated and they can charge a lower rate of interest.
If this is true and you can find it out, why can't clients of these lenders find it out? You imply that a nanny state is required. When you get a nanny state you end up with a nation of toddlers who always look to nanny to fix things. What happens when the head nanny turns out to be a psychopath? Then you have a nation of toddler sycophant's who blindly follow Head Nanny. I prefer people who are educated, either self educated or otherwise, who can stand on their own two feet and think for themselves.
 

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Marketplace did an episode on Go Easy, Fairstone, Cash Money and Money Mart. All are charging interest rates of over 40% on their loans. Canada allows a max of 60%.

Definitely some very shady and high pressure sales tactics. Sky high insurance rates, interest on insurance, not allowed to take a copy of the contract until you sign. All of this clearly caught on camera. Definitely predatory.

I understand that folks should understand what they're signing, etc, but the truth is a lot of folks simply don't have the capacity. I also understand the high risk, etc the lender is takibg. The government needs to step in and better regulate this industry.
 

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A government secured loan from a COOP or charitable organization could do a better job of "teaching" while helping the clients.

Governments have exclusive powers of collection, so the default risk is largely mitigated and they can charge a lower rate of interest.
I don't think it's an education problem.

As for the default risk, it's still there.
The point is that these people are bankrupt or near bankrupt. They have little to no ability to pay the debt back.
 

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The point people miss about these alternative lenders is that without them these people would have zero options of borrowing money. Money is a necessity of life. If you take away a necessity of life, from any human, you will find their reactions to it will carry more hardship for them and society, then what these lenders are doing. That is why the government allows it.

It is a competitive industry and it is a service that is as necessary as food.
 

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The point people miss about these alternative lenders is that without them these people would have zero options of borrowing money. Money is a necessity of life. If you take away a necessity of life, from any human, you will find their reactions to it will carry more hardship for them and society, then what these lenders are doing. That is why the government allows it.

It is a competitive industry and it is a service that is as necessary as food.
But the problem is that they'll use these guys, and become even too risky for them, then they're still have needs.

We have to deal with the actual reason how people get themselves into such a situation.
Once they're too far for these, they'll go to even less ethical lenders.
 

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Money is a necessity of life. If you take away a necessity of life, from any human, you will find their reactions to it will carry more hardship for them and society, then what these lenders are doing. That is why the government allows it.

It is a competitive industry and it is a service that is as necessary as food.
A major point of DeFi is that it is permissionless. Half of the population doesn't have access to banks and loans.
 
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