CAC Urges Consumers to be Wary of Same Day Loans

The Consumer Affairs Commission (CAC) is urging consumers  to be very cautious when considering  same day loans, also referred to as payday loans or quick loans.

Director of Communication at the CAC, Latoya Halstead, told JIS News in an interview, that while these loans might seem attractive, it is important that consumers ensure that the deals being offered are realistic and are not predatory loans by companies, some of which are not regulated.

“Some things that we would urge you to do, apart from considering whether you really need the loan, is to review the terms and conditions and factor in whether or not it is an add-on or reducing balance type of interest,” Ms. Halstead said.

She pointed out that predatory companies often charge exorbitant processing fees, as well as additional fees, sometimes adding up to as much as $10,000.

Ms. Halstead further noted that it is important that individuals who are going into these arrangements check the time period for repayment and any related charges.

“You have the due date as well as your pay date. Make sure that you are able to pay it on or before the due date, or it’s going to incur charges and gradually that add up,” she said.

The CAC recommends that consumers approach institutions like credit unions, commercial banks and thrift society institutions to access loans, because these are regulated entities, which have a system in place to enable redress and having matters addressed.