1026 replies to this topic

[VicHockeyFan]

If your intent is to borrow $1,500 and pay it down within six months, you will not be charged the same rate as someone borrowing $100 for a week.

 

 

 

That's very clear.  It'll be 59.9% annualized interest on that amount.

[spanky123]

^ I don't understand the hate for MM. They offer a service, which is regulated, which people can choose to use or not. If someone wants to open their own payday loan company and offer lower rates then they are free to do so. Fact is that many have tried and found that 17% is about what it takes to make a profit. 

[Mike K.]

Meanwhile your credit card provider will string you along with their minimum payment gimmick to keep you paying a $1,500 charge over the span of 300 months for a grand total of $14,000!

 

Next time you get your cc bill check out the little calculation at the back that lays out what things will look like when you only make your minimum payments, and quite frankly they want you to only make those payments.

[VicHockeyFan]

^ I don't understand the hate for MM. They offer a service, which is regulated, which people can choose to use or not. If someone wants to open their own payday loan company and offer lower rates then they are free to do so. Fact is that many have tried and found that 17% is about what it takes to make a profit. 

 

I have ZERO hate for them, I applaud them.  But the wider public perception of them is very poor.  That's all I've said here.  Other than trying to counter Mike's claims that they only charge 10% and it's the Big Banks that make them look bad.

Edited by VicHockeyFan, 18 November 2017 - 10:54 AM.

[VicHockeyFan]

^ I don't understand the hate for MM. They offer a service, which is regulated, which people can choose to use or not. If someone wants to open their own payday loan company and offer lower rates then they are free to do so. Fact is that many have tried and found that 17% is about what it takes to make a profit. 

 

It's not 17%, as most people would read it.

[VicHockeyFan]

Meanwhile your credit card provider will string you along with their minimum payment gimmick to keep you paying a $1,500 charge over the span of 300 months for a grand total of $14,000!

 

Next time you get your cc bill check out the little calculation at the back that lays out what things will look like when you only make your minimum payments, and quite frankly they want you to only make those payments.

 

300 months would be an awful lot.

 

Money Mart's loan on $1000 for 300 months will cost you $14975.01, if they offered that long a loan.

[Mike K.]

Ok ok, 10% might be a little optimistic, but it's also not 600%.

 

If we were to look at the cash machine fee you pay to withdraw $20 then that would also be an "interest rate" of 600% when you've paid $3.50 to instantly access $20.

[Mike K.]

300 months would be an awful lot.

 

Money Mart's loan on $1000 for 300 months will cost you $14975.01, if they offered that long a loan.

 

See, it's all pretty much the same. And my calculation was on a relatively average 22% interest rate. Some cards carry 30% rates plus charge a monthly fee for carrying a balance.

[VicHockeyFan]

See, it's all pretty much the same. And my calculation was on a relatively average 22% interest rate. 

 

59.9% and 22% do not end up at the same, by any means.  You were also using some type of odd calculator.

 

Your $1500 at 22% comes to $8,285.  Not $14,000.

Edited by VicHockeyFan, 18 November 2017 - 11:07 AM.

[Mike K.]

If you make a 1.5% minimum payment on a $1,500 credit card charge @ 22%, you'll have paid a total of $20,769 over 30+ years.

 

My last credit card statement had a calculation that showed I could pay off the balance in only 36 years by making minimum payments, lol!

[Mike K.]

Oh, here's the calculator: http://www.bankrate....um-payment.aspx

[jonny]

Regardless of your ethical or moral opinions regarding short term lending or payday loans, MM is one of our largest private sector employers and a rare corporate head office. These layoffs are a big loss is all. These workers aren't bad people, like most people who work in aquaculture, mining, oil, gas, fisheries, agriculture, pharmaceutical, alcohol or any other controversial industry. The restaurant industry probably hurts more people than payday loans.

[AllseeingEye]

At one point there were 200+ people working at Money Mart locally. Don't know what that number is now but I would think that it is at least 100. 

 

If the rumour is true, Money Mart is not going away, they are just moving the head office jobs to Toronto or another city.

This would not be terribly surprising: people here are apparently forgetting that Victoria may be the titular Canadian HQ for MM - however "MM" itself is merely one division (of eight national sub-units) within Pennsylvania-based Dollar Financial Group. MM "Canada" already has an office in TO and if the rumor above is true it simply moves MM HQ (a) closer to the US mother-ship and (b) into the heart of Canada's financial community, which also makes sense.

[VicHockeyFan]

They have 500 offices across the country and a total of 2000 employees, their website says. 

[lanforod]

This is a very interesting discussion. I agree that the general public perception (or at least, middle/upper class perception) of payday loan companies is negative. Part of it stems from people looking at what the interest rate is if annualized - which makes little sense if that isn't a possible loan to make on an annual basis. It makes more sense to look at it as a fee, rather than an interest rate.

It IS bad fiscally to use these places. Some folks have little choice, though. These places do take on risk that most lenders won't, and they should be compensated for that extra risk.

 

Here is an interesting UK based article on this: https://www.cashfloa...ad-reputation/ 

[spanky123]

This would not be terribly surprising: people here are apparently forgetting that Victoria may be the titular Canadian HQ for MM - however "MM" itself is merely one division (of eight national sub-units) within Pennsylvania-based Dollar Financial Group. MM "Canada" already has an office in TO and if the rumor above is true it simply moves MM HQ (a) closer to the US mother-ship and (b) into the heart of Canada's financial community, which also makes sense.

 

More than that, MM locally was the Canadian head office for Dollar as well.

Edited by spanky123, 19 November 2017 - 10:08 AM.

[JohnN]

Event: Smart South Island Symposium, 25 November, 9am-1pm, Victoria Conference Centre. Speakers, audience participation. Free but register. Details:

 

This is the first event in a two-part Smart South Island Symposium series hosted by the South Island Prosperity Project, to debate the opportunities and challenges that come with the smart and sustainable development of communities across the South Island region.

This interactive 3.5 hour session facilitated by Happy City author, Charles Montgomery, is designed to provide guests an opportunity to engage with speakers, ask questions and provide input on the challenges our region should try to solve with "Smart" solutions.

Our keynote speaker Jose Quadrio Alves is a Future Cities expert from CGI who will introduce audience members to a number of Smart City megatrends being implemented around the globe. Following this, a local panel of experts will discuss some of the possibilities and opportunities for our region to create positive social outcomes by applying smart technology in the following areas:

• Housing
• Transportation & Mobility
• Economic Resiliency & Inclusion
• Human Health
• Environmental Health

 

Building upon the momentum from the November 25th event, SIPP will be holding an open Innovation Challenge at a second Smart South Island Symposium - tentatively scheduled for late January. Groups will be invited to pitch their best ‘smart’ pilot project ideas for a chance to compete for three prize packages valued at $15,000. The prize money is to help refine pilot projects, and an opportunity to be included in the South Island’s federal Smart Cities Challenge proposal to the federal government.

Details of the Innovation Challenge, along with criteria for the pilot projects will be announced the week prior to the first Symposium on November 25.

Learn more about the Smart Cities Challenge at www.smartsouthisland.ca

Tickets for this event are limited - register your spot today!

 

https://www.eventbri...ets-39397790853

[tjv]

The reality is MM and others exist because the banks don't want to provide most of the services they offer.  I remember very well years ago when banks would shut at 4 or 430 and people would be in a mad rush to get to the bank to try and cash their pay cheque.  MM offered the solution for a minimal fee they would be open late for that convenience.  If people didn't want that service then MM would quickly have shut their doors, but that was not the case

 

Also try going into a bank and asking for a $1500 loan to replace a fridge or for a car repair, they won't have the time of day for you because at 3% interest rates its not worth their time to process the paperwork no matter how good your credit score is.  MM saw the opportunity and offered that service

 

I don't blame them at all.  I am not saying I agree with it because the reality is if you took say a $500 pay day advance then you will be short $500 in 2 weeks on your next pay cheque and you have to take another loan, repeat, repeat, repeat in a vicious cycle

 

It has the reputation of poor bashing because the vast majority of their clientele are working stiffs who are simply going to get by.  People with better jobs have savings, credit cards, lines of credits, etc to get them thru tougher financial times

[spanky123]

 

Event: Smart South Island Symposium, 25 November, 9am-1pm, Victoria Conference Centre. Speakers, audience participation. Free but register. Details:

 

This is the first event in a two-part Smart South Island Symposium series hosted by the South Island Prosperity Project, to debate the opportunities and challenges that come with the smart and sustainable development of communities across the South Island region.

This interactive 3.5 hour session facilitated by Happy City author, Charles Montgomery, is designed to provide guests an opportunity to engage with speakers, ask questions and provide input on the challenges our region should try to solve with "Smart" solutions.

Our keynote speaker Jose Quadrio Alves is a Future Cities expert from CGI who will introduce audience members to a number of Smart City megatrends being implemented around the globe. Following this, a local panel of experts will discuss some of the possibilities and opportunities for our region to create positive social outcomes by applying smart technology in the following areas:

• Housing
• Transportation & Mobility
• Economic Resiliency & Inclusion
• Human Health
• Environmental Health

 

Building upon the momentum from the November 25th event, SIPP will be holding an open Innovation Challenge at a second Smart South Island Symposium - tentatively scheduled for late January. Groups will be invited to pitch their best ‘smart’ pilot project ideas for a chance to compete for three prize packages valued at $15,000. The prize money is to help refine pilot projects, and an opportunity to be included in the South Island’s federal Smart Cities Challenge proposal to the federal government.

Details of the Innovation Challenge, along with criteria for the pilot projects will be announced the week prior to the first Symposium on November 25.

Learn more about the Smart Cities Challenge at www.smartsouthisland.ca

Tickets for this event are limited - register your spot today!

 

https://www.eventbri...ets-39397790853

 

 

I like the idea and applaud the SIPP for the initiative but lets face it, if this was truly an opportunity for community engagement then we would be discussing the subject areas first. Instead we are told that the discussion is on social justice as it relates to 5 predetermined topics. This is very typical of the City's approach - pretend you are engaging but then direct the discussion to the outcome that you want.

[JohnN]

I like the idea and applaud the SIPP for the initiative but lets face it, if this was truly an opportunity for community engagement then we would be discussing the subject areas first. Instead we are told that the discussion is on social justice as it relates to 5 predetermined topics. This is very typical of the City's approach - pretend you are engaging but then direct the discussion to the outcome that you want.

I don't see social justice in the SIPP advert, unless you see it in positive social outcomes and social prosperity. What I find a bit strange is their notion of "South Island" being just CRD plus couple of First Nations and business groups. Duncan is in region of South Island but excluding it helps to reduce pressure for addressing some social justice issues such as child poverty. "Cowichan Valley has the highest child poverty rate in B.C." And Duncan child poverty rate is 31% - almost double Victoria's 16% (page 30): http://still1in5.ca/...Report-Card.pdf