Are Easy Financial's installment loans a good deal? (CBC Marketplace)

Are Easy Financial's installment loans a good deal? (CBC Marketplace)

tonight on marketplace singing the money blues they should not be operating a business of any finance business at all crooner by night secret agent by day right her kids have no clue but this Toronto mother is helping us get the goods on a big bucks Canadian business we're gonna hook up this device to the cord in sight on a frosty toronto day we're wiring up deepak wellington now can we tuck this in a pocket sure now this is our hidden camera purse just wear this over your shoulder EPX going to find out about borrowing money from a company that's popping up everywhere good luck we reveal the hard truth about uneasy money keep X heading into easy financial a homegrown lending company one hundred and ninety stores across the country get the car fix cuz you can't get a loan now you're stuck here with jerky guy maybe you've seen their ads Oh smells like beef jerky it's supposedly easy money from easy financial they promise to approve you in half an hour and give you cash the next day borrow with simple little payments when the banks say no we say yes visit go easy calm those promises sure attracted Helen Perry let's just say her finances had gone to the dogs she can't keep up with the bills you know cost of living Rises but the pay doesn't and then utilities and everything goes up but so it gets harder each year you know her bank turned her down so she asked easy financial for a loan about $3,100 and sure enough she had the cash the next day I was relieved because you know yeah I didn't have any other option at the time but it wasn't long before that loan became one of her biggest bills to pay payments you think are manageable and then the debt keeps like life happens you know so we decide to find out how easy easy financial is about 800 people apply for a loan online and in store fronts every day but how much are they really paying for all that easy money we're sending our secret agent into three offices to ask about borrowing five thousand dollars I saw your sign if we're together he that knows the industry almost 15 years ago she worked for a different loan company she says she quit because she didn't like the business and that's why she's helping us out they asked you pack a few questions now how much is your NetID so how are you seem eager to line up the cash yes but what's the interest rate she'll pay macho's is twenty six point nine six per year hello almost forty seven percent they don't say that in the ads the interest rate is forty six point nine six annual point nine a month and get this that whopping interest rate he says no worries interest rates not the focus the focus is you want to get it alone and they'll break it down into monthly payments cost you Fox I'm gonna be about 375 a month for 36 months so how much interest are we gonna pay by the end of the loan it's used it like it changes just depending on the pay date the first payment date he said in that sort of thing so I can't give you a specific total because it will change nobody offers us an exact number you can't afford a new bed or a new couch because the bank's said no how can a company that boasts on its website that it's given out more than half a billion in loans not tell us exactly what it'll cost to borrow that money east of Toronto and Whitby Ontario we have a $5,000 loan 36 months monthly payments Peter Gorham has no problem with numbers he's an actuary an expert on interest rates I got around $4,500 for the cost of the interest he should know it comes out of very high cost to the consumer he's called to testify in court cases involving interest rates the criminal interest rate is anything over 60% so if you charge more than 60% a year it's criminal there are different ways to calculate interest rates so we asked Gorham to crunch the numbers easy financial quotes us using the common standard spelled out in the law oh they're very close the numbers I've calculated they coming in at around fifty nine point seven fifty nine point eight percent and 60s the maximum yes that's like a hair's breadth away very very close is that intentional I'm quite sure it is you don't go that close without being intentional yep easy financial says it charges an interest rate of forty six point nine six percent but figured another way you'll actually end up paying almost sixty percent so how are they targeting people with those sky-high interest rates we track down an insider wait'll you hear what she has to say just felt like we were stealing from people we give Helen surprising news and try to get answers company that doesn't want to talk to us we want your two cents what do you think of these loans join the debt debate on Facebook and Twitter we are under cover asking about borrowing five thousand bucks from easy financial an outfit charging sky-high interest rates that's problem breathing no loan needs no vet money no hug buffer for him you need to go easy an expert says those rates are borderline criminal go easy calm our debt load in Canada is at record levels and there's no shortage of companies offering loans to people in need I think that's totally wrong I think that nobody needs to make that kind of money on alone people like Helen parry can't keep up with the payments they're just take you for a ride it goes from bad to worse so just how does the company get people like Helen to sign up we track down a former easy financial employee she feels so badly about how easy financial does business she's speaking out well I would say they're definitely a ripoff because they're definitely in my opinion stealing even if they were to charge a more reasonable rate they'd still make money but they're greedy we've concealed her identity because she fears repercussions tell me a little bit about the customers who was coming in to see you people that are desperate for money young people elderly students how much do you think people understood about the cost of what they were borrowing I don't think anyone really understood all they wanted was the money and they wanted it quick and then you you pay and you pay and you paid and you pay and you pay I come home every day very depressed like just felt like we were stealing from people she says easy financial was so eager to give out loans at high rates they'd offer loans on top of loans absolutely they'd have rollover loans what's a rollover loan you wouldn't finish paying off your first loan but you've made so many payments and now you'd qualify for more money so you would add to that loan and you just roll it over get more money get more money what the interest rate still be as high yes there was no perks to getting a rollover for the client there certainly is for easy financial and for workers the more loans people signed up for the bigger the bonus sure enough Ellen Perry got offered a second loan easy financial calder with good news I could use the extra cash pay some more bills so I took it but the loan was for a longer time and those payments became a constant struggle so you're just in this rut just keeps a circle you know just goes around and round and round and that's obviously the payments you're making isn't making the debt go down because it's all interest and we're about to discover ez financials billing Helen for more money than she realizes it could cost you folks I'm icky about 375 back with our undercover appointment we asked what that monthly payment for our loan includes and what does that payment acknowledge a principle that interest but wait a minute just a few minutes later he drops in the word coverage it's a full extensive coverage covers you lose a job they covers if you'll hurt yourself hmm seems he's rolled in some loan protection insurance we never asked for what same thing at our other visits easy financial just adds in the cost of loan insurance without asking if we want it loan protection yeah or telling us how much it'll cost so we get our numbers guy Peter Gorham to figure it out well I got the insurance cost as about $4,000 he's left out a four thousand dollar cost yes it's a lot of money right on a $5,000 loan it's a fear factor the fear that you might get a critical illness you might lose your job it sounds like a smart idea but the cost is horrendous we show Helen what she's really paying for on her loan of more than $5,000 insurance alone is costing more than four thousand how do I get away with this any wonder you can't can't survive that insurance is supposed to be optional but none of the agents spells that out for us we have to ask cuz it's kind of a security for not only yourself but also for us because it's an unsecured loan right we're kind of just giving you pawns there you go if you're desperate for a loan maybe you're got a new job and you need a car to get to work and you need this loan to get that car any chance that you might get turned down that's gonna be really scary as a numbers expert would you recommend anyone get that coverage no I would I would turn that coverage down immediately easy financial says it sets out the cost of borrowing and insurance in the loan agreement and you can always cancel the insurance or the loan but get this easy financials part of easy home a company we've looked at before for questionable business practices it leases furniture and appliances at high interest rates too and our undercover agents had first-hand experience babbling with them over billing errors it scares me that they are actually running a finance company we want to know why this company is gouging customers so we asked ez financial for an interview repeatedly their exact seemed comfortable on camera but we're told senior managers are away traveling we decide to pay head office a visit anyway hi there Erica Johnson from marketplace I'm here to see David Ingram we wait waiting almost 10 minutes to find somebody to talk to here and wait finally we're told the chief operating officer actually isn't on the road he's here we wanted to talk to him about easy financial and the high interest rate so does he have two minutes not not today no one in senior management that could talk to us today virtually not today not so easy to talk to someone at easy Financial as for Helen she's getting help from a debt counselor she told me that they had a lot of dealings with easy financial with their clients and usually they can negotiate a rate of 10% but it's all been a costly learning experience that's worn her down if at all possible stay away from these easy lending institutions because you know they just make matters worse for people who don't have the money hey guys our secret agent APEC Wellington never did find out how much a loan plus interest plus insurance would cost so we do the math so that's five thousand would cost you thirteen thousand five hundred outrageous just outrageous aren't you glad you didn't sign up for the loan oh yeah absolutely because when it comes to easy financial money that's so easy to get and be hard to pay back you

49 thoughts on “Are Easy Financial's installment loans a good deal? (CBC Marketplace)

  1. Helen's story: The BANK turned her down, and they said YES. AND if she couldn't afford the payments, she shouldn't have gotten the loan, nor should she have gotten the increase. She approached them, and she agreed to everything. She could've read the papers before signing and was not obligated to get the loan. Don't blame any lender for you not being able to manage your own finances.

  2. I sold cars for many years and only one time did a girl's father have enough sense to multiply the payments x the number of months to arrive at how much his daughter would be paying in total. This is a product of our educational system.  They teach us "crap" in high school, not how to manage money. Such a shame.

  3. Hear this Brian Bologna (Mulroney) and Carbon Barb.
    You are hurting many people like her. This is a sample of reality.

  4. I love how the first ad that pops up near the end of the video is for fairstone financial, another high interest lender. WTF!!

  5. Easy financial is the worst company on Earth. They are scum and will lie and hide fees on your loan without your knowledge and secretly extend your payments and you don't know it until your last day expected payment…. then surprise, 4 more months of payments. If it was legal, I would go in there and set the place on fire.

  6. I got one once, was reading the fine print and was just like jesus christ on a pogo stick.

  7. Bookies are cheaper actually.. 10 to 20% they charge and these guys (easy F..) charges 46.99 to 59.99%

  8. I believe most people get approved because in the end you are obligated to pay with interest no matter what. So not paying interest is not an option.

  9. Funny how you never see "Pay $375 a month for 36 months" or "Interest rates as low as 59.97%" on the big, flashy, colourful sign out front that says "GET $5,000 EASY!!!!!!!!"

  10. I'm glad marketplace is actually such a real show for the people, I hope it never gets cancelled by the big bosses on top, the owners

  11. 😐this seems similar to the payday loan spots that have infested the US. Do they have such establishments in Canada"?

  12. Gets harder each year so let's add a whole bunch more debt to it! Yeah, good idea! You do sometimes get what you deserve.

  13. Okay but they told you the interest rate….. the problem is people don't understand what the hell they're doing. The Loan insurance thing is different they should be told about that

  14. 2:00 She talks about utilities going up while standing in front of a fridge the size of the average family home in Hong Kong.

  15. People get a high interest rate because they have a high credit risk aka more likely to default on loan because of missed payment. It's unfair but these types of places are not hiding any info before handing out cash, and it's not hard to figure out the total cost.

  16. Imma b devil's advocate the reason they charge high rates is there default rate. The reason the bank won't loan you 5000 is cause if your 20 people get a loan at 5000 that's a 100000 if they pay 10 percent interest they make 10000 in profit however if two of those 20 people don't pay they could lose money especially if u add in over head and paying there rent and employees. However with the easy company they give riskier loans cause they can afford to have more people default

  17. I don’t feel bad for a grown woman that voluntarily takes this loan nevermind someone that does it twice. To have a max rate of 60% is crazy. I am in Boston and max rate in MA is 21%

  18. i took a loan from them .my intrest rate was 19.99% after my first loan well when the banks say no at times when times are tough there aint no media to help you out. you borrow money they aint for charity you gotta pay them the intretests and in my case i borrow it for business and thats how it works

  19. It’s high risk, that’s why the interest rate is so high. Banks turn them down for a reason. These are extremely risky loans requiring a high interest rate. The lender told them the payments and the terms.

  20. Lost almost $18,000 on a $2500 consolidation loan. They made it easy gave me what I needed in a hard time and when the banks said no. Now 5 years later I’m just finishing a bankruptcy because of them

  21. Why the Canadian government is allowing those crooks to operate? I am Canadian and I really like to know . Does the Canadian government cares about us Canadians or not ?

  22. Easy financial says that a 5000 dollars loan payable in 36 weeks at a rate of 61.70 per week for a duration of 36 months . 61.70 x 156 weeks = 9,625.20 .
    That is criminal.
    Those financial companies are crooks.

  23. Easy financial are criminals and thieves. 59.80 % interest . Real criminals.. The government should close these financial companies down .

  24. For 750 dollars, these loan companies want to know , your name , SIN, passport number , bank account number, your job address your home address. To pay back the loan, 750 dollars + 33 dollars + 350 dollars( fees for opening the file ) . Really disgusting. , Loan companies in CANADA.
    I live in Montreal Quebec. Loan companies are getting away with all these scams .
    Please stay away from loan companies. It is not worth it.

  25. The easiest way to deal with predatory lenders like this one would be to send the world famous scammers of Nigeria and Eastern Europe.

  26. the cost is high because the risk is high – if you dont pay your bills in the past then you pay a higher cost

  27. Most high interest credit cards are in the 25% area. If you are signing up for a loan in the 45% area that should be a red flag that you shouldn't sign on the dotted line at all.

    Dad *i shouldn’t have done that…..”
    Daughter its okay, dad
    Dad *no! The game! I shouldn’t have done that in the game! Go away! Go go go!”

  29. How you get away from it? Talk to your local congressman to draft a legislation working for borrowers best interest. Most important, don't apply in the first place.

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