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could someone explain about finance shops please [11]
Could it be like the Payday Loan schemes we have here in Canada?
Somebody with a job, but is very short on money presents his ID, proof of employment and a copy of a pay stub to the payday loan company. The company verifies all of the said information and makes a loan to the person who is short of money, on the premise that when the next pay comes in, they will pay off the loan. In the mean time extortionary interest rates are charged on the loan.
The sad thing is, once you get started, it is almost impossible to get off this "roller coaster". Think about it. If you are so broke that you need next week's pay today, how are you ever going to get ahead again, when the fees are so high, and you are constantly living off of next week's pay?
This practice is currently under review here in Canada.