Thank you.
Definitely there's a lot that one can do in the instalment lending space, for sure, particularly because we know there's no complaint mechanism at the federal level in case a person wants to prosecute, ask any questions, take these lenders to court or even file a complaint. There is no mechanism that exists.
In our submission, ACORN said that we need a complaint mechanism at the federal level so people have some sort of space these issues can be taken to.
I'll also let Donna speak about her experience with her instalment loan, but I think one thing we've noticed is that, in the absence of accredited alternatives, these lenders are pushing.... For instance, if a member has a payday loan, they're enticed to take an instalment loan. A lot of our members have been enticed to do that. It's, “Oh, you're paying your payday loan regularly, so why don't you take a $5,000 loan?” In that vulnerable situation when a person needs money, this is exactly what they do.
As Donna mentioned in her remarks, it is very difficult to understand the cost of borrowing. It's not about people who are not financially literate. It's just that the numbers are so hard to understand. On top of it, as I mentioned, there's insurance and there are late fees. There are a lot of things bundled into the loan that make the interest rate much more than 60%.
Donna may wish to add something. Thank you.