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Calgary Man’s Payday Loan Woes Paid Off

October 8th, 2015  |  Canadian Business

Ashley Keewatin didn’t realize debt relief was just around the corner when CBC Calgary reported on his payday loan story this Wednesday.

Keewatin, who relies on a fixed income from AISH, borrowed $400 over a year and a half ago for a damage deposit and has been paying ever since.

He had to repay the loan plus an additional $92 in interest every month and then turn around and borrow another $400 just to make ends meet. He was trapped in a never-ending cycle of debt with no hope of relief on the horizon.

Jim Prokop, a local businessman, heard the story and knew he just had to help. "I heard your story yesterday on the radio and it's just sad so I just thought I'd help you out,” he said.

With that, he wrote a $492 cheque and freed Keewatin from the payments.

"As of today I am out of that payday cycle. I'm free, I'm free at last," said Keewatin. "I'll be able to put groceries on my table, you know, like a little bit more groceries. It's financial freedom from this cycle that I was in.”

Keewatin says he’s learned his lesson and will never make another payday loan.

The government of Alberta is currently reviewing legislation related to pay day loans and is asking for public input after receiving complaints about the amount of interest charged.

Currently, companies are allowed to charge $23 of interest on every hundred dollars borrowed, the second highest rate in the country.

A survey can be found on the Service Alberta website until October 28 and face to face meetings are being organized with these companies and other stakeholders.

Image Courtesy of Stock Adobe