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The Blue Hog helps Canadians with emergency and short term financial needs. Fast, same day, no hassle, no fuss online payday loans on our internet website. Pay cheque or direct deposit? Finances short? Negative cash flow? NSF's?

Get approved today; in Ontario, Alberta & British Columbia we give dollars to cover your debt with comparable interest rates. Need available funds advanced today, before your pay day? Try our quick & easy virtual online application; no store, no hassle; problem free loans. Instant pre-approval cash advance in Canada with no credit check. We transfer the money directly to your personal or credit union bank account; either savings or chequing.

thebluehog.com
Press Release

April 16, 2008

Terry Henhoeffer, president and owner of Zippycash.ca, is pleased to announce the birth of thebluehog.com. This is a welcomed addition to the online payday loan industry.
The new website will allow Canadians to receive an instant response to their online payday loan needs. Now clients will be able to login to their account and request additional funds, update personal information, view the next payment scheduled, in addition to many excellent service options. This was created in response to client's needs and protection opportunities, as a consumer now has access to their account online. This user friendly website is a great addition to what people look for in a payday loan company.
Thebluehog.com has an established a code of conduct along with many customer friendly options. The strength of the businesses reputation is the cornerstone of their future in the online payday loan business.

Welcome to thebluehog.com!

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HogBlog

Welcome to our outlet for random facts, tips, interesting tidbits and news on everything payday loan related.

The hog is your stop for all your payday loan needs

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A breakdown of costs for providing payday loans in BC

Friday, July 25 2008
Staff Writer

Canadian Payday Loan Association (CPLA) has released information from their study on the cost of providing payday loans in British Columbia. CPLA advocates the Payday Loans Act to ensure consumer protection and a viable industry.

"The passage of Bill 27 was a step in the right direction towards eliminating bad lending practices ..." says CPLA President Stan Keyes. "Setting the right cap will further protect consumers while ensuring access to credit where needed through a viable industry."

The study entitled "The Deloitte & Touche survey," includes 57 of the 121 payday loan companies in B.C. It shows the results of the average cost for lenders to provide payday loans. "It's important to recognize that many smaller payday lenders, particularly those in BC's rural areas, face higher operating costs," said Keyes.

The cost is broken down into the following categories:

• Operating costs: $20.43
• Cost of supplementary capital: $1.57
• Cost of capital: $0.52
• Bad debt costs: $2.69

The results show the average cost of a payday loan per $100 in BC is $25.21.

"The CPLA encourages the BC government to use this survey as a guide when setting a maximum payday lending rate. Even at $35 per $100, some BC payday loan companies would be forced to close operations," said Keyes.

Source:
CPLA. (2008). CPLA releases cost of providing payday loans in British Columbia.
http://biz.yahoo.com/ccn/080721/200807210475227001.html?.v=1

Payday Loans 101

Friday, July 18, 2008
Staff Writer

A payday loan provides immediate funds for those with unexpected financial need. The purpose of this type of loan is the immediate access to cash but should be paid back on your next payday. There are higher costs associated with borrowing a payday loan so it is recommended to only borrow what you need and what you can afford to pay back.

A few things to consider before taking out a payday loan are the following:

• Before taking a payday loan, consider other, cheaper options, such as overdraft protection on a bank account, an advance on a credit card or a personal line of credit with a financial institution.
• There are a lot of costs involved in payday loans, including high interest rates. Some of these costs can be hard to understand. Ask what additional costs may be charged if you don't pay the loan off on time. The new Ontario Act requires that all charges you're required to pay are included in the total cost of borrowing.
• Don't borrow more than you need. If you must borrow, only borrow an amount you're 100 per cent sure you can repay on the due date. Don't agree to have your employer sign over all of your wages to the payday lender if you're unable to repay what you owe. In many provinces, this is illegal.
• Get a copy of the loan agreement and take it home, read and understand it before signing. Don't feel pressured into signing before you read and understand the loan agreement. Under the new Ontario Act, you now have a cooling-off period during which you can change your mind. Don't use your personal property, such as a car, as a guarantee for a loan.

Source:
Williams, Terri. (2008). Don't let payday loans become payday moans.
http://www.timminspress.com/ArticleDisplay.aspx?e=1108527

Manitoba moves towards capping payday loans

Friday, July 11, 2008
Staff Writer

"Manitoba has moved another step closer to capping interest rates on payday loans.

The province has received the green light from the federal government, through the Criminal Code, to set maximum interest rates for short-term loans.

Finance Minister Greg Selinger says the limits could be in place by fall.

The province's Public Utilities Board has already ruled that interest rates will be capped at 17 percent for loans up to $500.

Some payday loan companies are appealing that ruling, saying the interest rate is too low for smaller companies to survive on."

Source:
http://www.edmontonsun.com/News/Canada/2008/07/08/6099196.html

Payday loans are not usury

Friday, July 4, 2008
Staff Writer

Wikipedia on the internet provides an extensive definition of the word usury. They refer to usury as:

"Usury (pronounced /ju ri/, comes from the Medieval Latin usuria, "interest" or "excessive interest", from the Latin usura "interest") originally meant the charging of interest on loans. This would have included charging a fee for the use of money, such as at a bureau de change. After countries legislated to limit the rate of interest on loans, usury came to mean the interest above the lawful rate. In common usage today, the word means the charging of unreasonable or relatively high rates of interest."

Meyers indicates that the definition of usury from a random Google search is:

"An exorbitant or unlawful rate of interest"

"Let's take "unlawful" first. States that permit payday loans also specify the maximum allowable fee and/or interest by statute. As long as a payday lender makes a loan within those amounts, the loans are lawful and therefore not usurious. And, as it happens, legitimate payday lenders, which comprise of 99% of the industry, follow those exact laws.

Let's define "exorbitant", per the same dictionary, as "greatly exceeding bounds of reason or moderation".

We must ask what "reasonable" means in the world of short-term unsecured credit.
If a lender charges a price he deems reasonable that the borrower thinks is unreasonable, the borrower will not take out the loan. After all, if lenders charged 2600% APR, or $100 per hundred borrowed, they would not get any customers. It's called "pricing oneself out of the market".

If the borrower wants a price he deems reasonable that the lender thinks is unreasonable, the lender will not make the loan. After all, if lenders charged 36% APR, or $1.38 per hundred borrowed, they would get many customers….but the lenders would go out of business within a month because they would not generate enough revenue to make up for overhead and defaults."

Source:
Meyers, Lawrence. (2008). It doesn't walk like a duck, so it definitely is not usury.
http://paydayfacts.org/?q=node/41

Stronger Protection for Payday Loan Consumers

Friday, June 29, 2008
Staff Writer

As of June 9, 2008, the Payday Loans Act has been passed and was recently given royal assent. The legislation was passed to:

• "Create a licensing regime for payday lenders and payday loan brokers
• Prohibit certain industry practices and require that all payday lenders and payday loan brokers in Ontario operate with a license and within the law
• Create enforcement through inspections, prosecutions, and suspensions and revocation of licences
• Establish the Ontario Payday Lending Education Fund to promote an understanding of the proposed legislation and financial planning
• Increase public confidence in the integrity of the payday lending market."

Those who use payday loan providers now have increased protection when borrowing. By licensing all payday lenders and banning certain practices, the consumer will have enhanced protection. An educational fund was also created to help consumers make informed decisions relating to payday loan use.

The costs for using a payday loan service will be examined by an advisory board of experts, local business representatives and clients advocating payday loan use will review the fees and recommend a limit.

Source:
CNW Group- Ontario Newsroom. (2008). Ministry of Government and Consumer Services: New Payday Loans Act Provides Stronger Protection.
http://ogov.newswire.ca/ontario/GPOE/2008/06/09/c2009.html?lmatch=&lang=_e.html

A guide about Payday Loans

Friday, June 20, 2008

The purpose of this guide is to provide consumers with information about short-term borrowing and how it can work best for you. "It's all about using the loan for the right reason and paying it back as agreed."

A payday loan is intended only for a short period of time and is best when paid back on your next payday due the amount of fees normally charged. The purpose is to cover any emergency expenses until your next payday.

THE AMOUNT OF A LOAN

The amount you can borrow varies between companies. A payday loan usually does not exceed $1500 for a first time loan. Other companies restrict the amount to a lower amount for first time borrowers. The range is normally between $50-$500. These loans are unsecured and do not inquire about your financial or credit history. As well, once your first loan is paid off, the amount you can borrow usually increases.

THE USE OF A PAYDAY LOAN

Due to the higher fees involved, a payday loan is intended to be a small short-term loan that is not intended as a solution for longer term financial needs. You borrow as much money as you can afford to fully repay when the payment is due. If you need to borrow money and feel it will take longer to repay, you should explore other lending options such as: asking a friend, asking an employer, asking a family member, obtaining a bank overdraft, a line of credit, cash advance on a credit card, or consolidating your debt at your bank or financial institution. We recommend you see a credit counselor if you are having financial problems. Non-profit Credit Counseling services can be found in your local phone book. We recommend that you make extra principal payments to pay down your loan faster.

THE REASON

Many people find that they need a little extra before their next payday. If you are unable to use any of your other resources, a payday loan can be very helpful if used correctly. Sometimes people need to pay an unexpected bill or other expenses that arise. Payday loans can help reach your financial needs, as long as the loan and fees are paid back.

COST OF PAYDAY LOANS

The rates that companies charge vary. The new legislation includes a possible cap of 60% annually. The regular rate is about $15 for every $100 borrowed a week. The amount of the interest is also based on when you take out the loan and when you pay it back.

The problem that can arise is if you cannot pay back your loan on time.

You have to make sure that your next pay cheque will cover what you borrow plus the interest. There is an option to just pay your fees and then pay back the original loan borrowed but this can become very expensive. If borrowing a loan, it is best to plan in advance and determine if and when you will be able to pay back your loan.

Source:
Nisbet, Peter. (2008). A guide to emergency cash loans and payday loans.
http://www.content4reprint.com/finance/a-guide-to-emergency-cash-loans-and-payday-loans.htm

60% cap on interest recommended

Friday, June 13, 2008

The review committee currently looking to the payday loan industry in Ontario has been urged to cap the interest rate at 60 per cent.

"Sixty per cent has been the maximum rate in this country for some time," argued Charles Foster. "Our concern is if the government goes beyond 60 per cent, then what we're talking about is the decriminalization of usury in the province of Ontario and I submit that would create a whole host of other problems (including) hardships for borrowers (and) upward pressure on consumer interest rates."

"Other groups that gave depositions, including the Toronto & York Region Labour Council, recommended a rate between 40 per cent and 60 per cent. Parkdale Community Legal Services would like to see a number closer to rates on lines of credit, in the low 20 per cent range.

Norman Bishop, who spoke on behalf of the Canadian Payday Loans Association, said interest rates that low would essentially destroy the industry. Two-week loans have unique financial implications for a lender, he said. To offset staffing costs, company rental costs and other administrative fees, a higher rate is needed, he said."

Other recommended following the Manitoba laws that were set out in April earlier this year where the cap was set on a graduated scale. Nothing conclusive has been set yet in regards to capping the rates on payday loans.

Source:
Doolittle, Robyn (staff reported). (2008). 60% cap on interest urged for payday loans. http://www.thestar.com/News/Ontario/article/432701

Interesting things you should know about payday loans

Friday, June 6, 2008

Educating consumers in relation to payday loans is a high priority in the new legislation act that is currently being reviewed in Canada. Any individual interested in obtaining a payday loan should first concern themselves with the services and fees associated with each company.

Interest and fees associated with payday loans:

Each company has various fees for using their services. The legislation is currently reviewing the fees that lenders charge and are considering placing a cap on the legal amount they can charge. In Canada, illegal rates are those that charge above 60% annually on the principal loan. Visiting each website and researching the fees would give an indication of the charges associated with borrowing from that institution.

NSF charges or missed payments:

It would also be advised to find out what will happen if a payment is missed or comes back as an insufficient fund from your account. Each lender has various terms in which the consumer should educate themselves with before deciding to obtain a loan.

With this information at hand, individuals should weigh the pro and cons before deciding to obtain a loan. It is also a good idea to contact the lender directly and ask about their services, costs and procedures. If a consumer feels comfortable and satisfied with the information learned, then they should go ahead and apply for a loan if in financial need.

Source:
http://www.zeyy.com/things-you-should-know-about-payday-loans-in-canada-692/

The Costs Associated with Payday Loans:

May 30, 2008

A payday loan is a short term cash advance before your next pay. It is usually due to be paid back on your next scheduled payday, plus any interest or additional fees and charges for borrowing. This amount is predetermined if the loan is paid back on time.

Before getting a payday loan, be sure to read and sign a loan agreement. This document should be read, understand and agreed to before taking out a payday loan. The terms and conditions usually include:

• The amount of the loan and pay back date
• All costs for borrowing a loan, including any upfront fees and charges, service fees and charges, interest for the loan period, consequences and charged when the loan is late, the APR, and the cost per every hundred borrowed.

The following is a list of some of the most common types of fees and charges associated with payday loans;

• Interest: this is calculated from the first day that you take out the loan until your next payday or when you pay your loan back in full. Payday lenders, according to the Criminal Code of Canada, are not allowed to charge a rate of more than 60%.
• NSF or return fee: this will occur if you do not have enough money in your account to cover the payment automatically withdrawn from your account. Your institution may charge you an NSF fee plus the lender may charge you a fee for the returned payment.

Below is a list of things to consider when taking out a payday loan:

• Ask as many questions as you need to. Do not hesitate to contact their customer service number. Read all information carefully, especially the loan agreement.
• Ask about the fees, charges and any interest that may be associated with borrowing funds. Also ask what happens when or if you cannot pay your loan back on your next payday.

Be sure to contact the payday loan lender if you have any further questions or concerns. Customer service is open to help answer any questions and ensure you receive the highest quality service.

The Features of Borrowing a Payday Loan

Thursday, May 15, 2008

Payday lending has become a booming industry. In recent years internet lending has also sprung up making payday loans services more efficient and accessible for consumers. Online lending includes locating the best payday loan provider and accessing their site. A consumer fills out the application online and is immediately notified if they qualify for a loan.

There are many features that are appealing a consumer who needs access to immediate funds to help with emergency financial needs.

Some of the features include:

• No credit checks - no background checks on financial history are completed when applying for a payday loan. People with bad or no credit history can easily apply for a loan.
• Re-loaning is possible - Once the original loan is paid in full, another loan can be obtained. With the new legislation in place, the amount of times a consumer can re-borrow per year is yet to be determined. Currently, an individual can re-loan once the original balance is paid.
• Apply 24/7 - online lending services are available at the convenience of the individual. Each store has set hours for customer service and loan deposit times, but the consumers can access the internet site at any time.
• Immediate pre-approval - once an application has been filled out, a consumer is notified if they are pre-approved. The funds are then deposited into a personal bank account within as little as 30 minutes.

There are also various re-payment options that allow some flexibility for the consumer. Each payday loan lender provides different options for their clients.

All about Payday Loan Firms

Thursday, May 15, 2008

Regardless of any type of loan a consumer borrowers there are going to be fees involved. When it comes to the payday loan industry, the fees for borrowing a $100 loan range from $15-$25 per week. Most companies also provide the option for "rollovers."

Q: What is a loan renewal or loan roll over?
A: With a loan renewal, your bank account is debited only the interest and fees due on the loan, you keep the principal (loan). New fees are added, and the loan is due again on your next pay date. This is not a payment plan.
Q: How often can I do a loan renewal?
A: You can do a loan renewal as often as you need to. Each time you do a loan renewal, the previous loan is paid out and a new loan is generated, with applicable fees, until your next pay period.

The government of Alberta is currently looking into capping the fees for each loan borrowed and also removing the ability for rollovers. Thus, with the intention of helping those individuals caught in the cycle of borrowing payday loans.

However, many payday loan companies advocate the purpose of their business as a short term financial support to individuals with immediate or emergency needs. They further suggest that individuals who explore alternative options if they have longer term financial needs. They also recommend seeking a credit counselor for assistance with any financial problems.

Source:
http://www.canada.com/calgaryherald/news/story.html?id=f403d3c3-c231-4823-ab7d-92735640d9ac&k=34825
www.zippycash.ca/questions.php

U.S Payday Loan Lenders Preying on Ontario Consumers

April 21, 2008

While the government is currently reviewing the payday loan legislation to regulate interest rates, NDP MPP Cheri DiNovo is concerned that the U.S. lenders will prey on Ontarians. U.S markets now have strict caps on their interest rates, such as Oregon, New Hampshire, and Colorado with an Annual Percentage Rate of 36 percent.

"Ontario is last when it comes to regulation in the payday lending industry, positioning it as an attractive place for payday lenders to do business. Unfortunately, the Ontario Government's proposed legislation will not stop the proliferation of payday lenders setting up in this province," said Whitelaw. Bob Whitelaw is the founding president of the Canadian Payday Loan Association.

DiNovo is suggesting an immediate cap on interest rates of 35 per cent in an attempt to prevent the U.S. from preying on Ontario consumers.

Source:
http://ontariondp.com/us-payday-loan-sharks-set-prey-ontarians

Payday lending legislation introduced

April 24, 2008

The Association of Community Organizations for Reform Now (ACORN) is applauding the Ontario government's decision to regulate the payday loan industry. In review for the legislation is the possibility of banning rollover loans and licensing lenders.

ACORN has indicated that its belief that lenders are preying on the vulnerable. However, key findings in the most recent survey conducted in Ontario in regards to those consumers who use payday loans, have found:

• consumers are on average an age of 39 years of age
• at least 68% are employed full time
• over half have a post-secondary education in college, university and professional programs
• 62% borrow less than $300 on average and would expect to pay about $23 in interest to borrow $100 for two weeks
• payday loan consumers also have average household incomes

Furthermore, the reasons for using cheque-cashing or payday loan companies:

Faster/more efficient/needed money immediately	25%
More convenient hours/open evenings and weekends	18%
Convenience (unspecified)	10%
Poor credit rating/had declared bankruptcy	7%
No bank account	5%
Convenient location	5%
Cheque cashing	5%
Other	19%
Do not know/refused	5%

The current legislation will help regulate the industry and provide consumer protection.

Sources:
http://acorn.org/?2690
Financial Consumer Agency of Canada (2005)
http://www.cpla-acps.ca/english/reports/3631%20Ontario%20CPLA%20Report %20FINAL%20(Oct%2026).pdf

Payday Loan Legislation

Ontario

(Ottawa)- April 19, 2007

Liberal Party and the New Democratic Party passed a law that ensures strong regulations in the payday loan industry. The new law gives each province the authority to set a maximum rate on the cost of borrowing and balances consumer protection. It also means that those companies leading in the payday loan industry following regulations will remain at the top and those that are not will be put out of business.

The law is great news not only for the consumer but for businesses as well, since this is the first time there will be specific provincial regulations for lending. This means that there will be an increase in responsible lending practices as the lenders become more reputable for their services.

Annually, over two millions Canadians borrow payday loans. The provincial government understands the need for the payday loan product and has a desire to remove those companies that are the least dependable.

By late 2007 / early 2008, most provinces will have set the maximum fees.

References

Canadian Payday Loan Association. (2008). Federal government passes law to allow provinces to regulate industry. http://www.cpla-acla-acps.ca/english/pr_2007_03.php.

Current Canadian News on Payday Loans: Fees Capped

(April 3, 2008)

As of April 1, 2008, the Ontario Government has plans to introduce the new payday loan legislation, which will place a cap on the fees that are charged and provide consumer protection.

If the legislation passes all payday lenders must abide by the following rules as well:

• Be licensed by the province
• Provide customers with upfront fees and charges that they are required to pay when borrowing
• Annually contribute to funding that pays for educating the public about payday lending

The legislation is still under consideration.

Sources:
http://www.cbc.ca/canada/toronto/story/2008/03/31/ot-loan-fees-080331.html?ref=rss

Reasons for Using Payday Loan Companies

(Kitchener, Ontario) Wednesday, March 19, 2008:

Key findings in the most recent survey conducted in Ontario in regards to those consumers who use payday loans, have found:

• consumers are on average an age of 39 years of age
• at least 68% are employed full time
• over half have a post-secondary education in college, university and professional programs
• 62% borrow less than $300 on average and would expect to pay about $23 in interest to borrow $100 for two weeks
• payday loan consumers also have average household incomes

An additional study also indicated reasons that consumers use payday loans.

Reasons for Using Cheque-Cashing or Payday Loan Companies

Faster/more efficient/needed money immediately	25%
More convenient hours/open evenings and weekends	18%
Convenience (unspecified)	10%
Poor credit rating/had declared bankruptcy	7%
No bank account	7%
Convenient location	5%
Cheque cashing	5%
Other	19%
Do not know/refused	5%

Source: Financial Consumer Agency of Canada (2005), p. 11.

Furthermore, the following chart indicates the frequency that consumers use payday loans.

Frequency of Use of Cheque-Cashing or Payday Loan Companies.

More than once per month	10%
About once per month	12%
Every few months	9%
Once or twice per year	20%
Less than once per year	48%

Source: Financial Consumer Agency of Canada (2005), p. 13.

Sources:
Financial Consumer Agency of Canada (2005)
http://www.cpla-acps.ca/english/reports/3631%20Ontario%20CPLA%20Report %20FINAL%20(Oct%2026).pdf