Mr. Speaker, I think we are losing sight of something that is important here and that is the magnitude of the problem.
The member opposite talked about usurious interest rates and the member for Winnipeg Centre before him talked about the way credit card companies are ripping us off.
Let us take an interest rate of 18%, which is the rate of a typical credit card. I would like to ask the member this. Let us say he was walking down the street and a stranger approached and said, “Will you lend me $100 and a month from now I will give you $101.50, if I happen to show up, with no security?” Would he lend the stranger the money? I suspect he would not. Yet to charge $1.50 on a $100 loan for one month is 18% per annum.
I think we need to get away from the idea that the fee charged is a straight interest charge. We know that many short term loans go into default, so the money is gone. These companies do not get the $101.50. They do not get the original $100 back. It is gone. For them to charge a little more because of the risk of the situation I do not think is terribly unreasonable.
Furthermore, to charge $2 for a $100 loan for a month hardly covers the cost of the employees and certainly not the cost of the store for which they have to pay rent, utilities, taxes and so on. They are going to charge maybe $2 or $3 for a $100 loan for a month. That is a service they are providing. If we take that away, then our poor people have nothing.
I have other questions, Mr. Speaker, but just from your posture of sitting on the edge of the chair I know I have to shut down for now.