37% of Ontario insolvencies include pay day loans, study discovers

37% of Ontario insolvencies include pay day loans, study discovers

Nicole Gibillini , BNN Bloomberg

The ‚overwhelming burden‘ of a loan cycle that is payday

The percentage of insolvent borrowers making use of pay day loans in Ontario is regarding the increase, based on a new report, which unveiled four in 10 insolvencies just last year could be traced back once again to the high priced style of loan.

The amount of customer insolvencies within the province that involved payday loans – which typically include excessively high interest rates – rose to 37 percent in 2018 from 32 % in 2017, the study by insolvency trustee firm Hoyes, Michalos & Associates Inc.