Same-day loan ads targeted at Nova Scotia renters raise concerns

Ads for same-day loans targetingpeople who need rent money have been appearingin Nova Scotia, and a credit counsellor is concernedthat a high-interest fixcould start a cycle of payments people can't afford in the midst of an already volatile housing situation.

In one online advertisement, easyfinancial Services offers Nova Scotia renters same-day loans from $500 to $15,000. It suggests looking after emergency expenseswith an "affordable loan."

Interest for payday loans can start at 29.9 per cent. John Eisner, president and CEO of CreditCounselling Services of AtlanticCanada, says that is concerning.

"I'm appalled by it," he told CBC Radio's Information MorningWednesday.

Eisner said interest rates can legally be as high as 60 per cent, and ads for loans like these only come out when people are vulnerable.

These high rates are "compounding the problem," Eisner said.

Manuel Moncayo-Adams, a resident of Halifax, saw thead on Facebook for the first time this week.

"I meanan ad like this any time is abhorrent," he said Wednesday.

Moncayo-Adams said he believes anyadvertising directed at struggling renters is insensitive and predatory, particularly after seeing last week's teardown of a tent encampmentoutside Halifax's old central library.

In an email, a spokesperson for goeasy, the parent company of easyfinancial,helps "provide access to credit for non-prime Canadians."

"Easyfinancial is not a payday lender we are an alternative financial provider that bridges the gap between banks and payday lenders," saidBryan Tritt, goeasy's vice presidentofcommunications,public relations andmarketing.

Eisner said people should look to non-profit groups for help before choosing short-term, high-interest loans.

He said the problem begins with thehousing situation making people more vulnerable to same-day loan companies, which can put theminthe "revolving door" of multiple loans.

Eisner said the issue isn't going away anytime soon. "Regardless of what [payday loan companies]say, theytargeted the vulnerable people."