Bad credit? No credit? No problem! At least, no problem for Toronto Dominion and other major banks which have recently been driving full speed into the dubious practice of high-interest subprime car loans.
According to recent reports, the practice targets people who often can't get regular credit yet still need a car to get around.
The marks blunder in to car dealerships and - lacking alternatives - agree to car financing provided by the banks at interest rates that would make a loanshark blush.
Victims are promised they can renegotiate the loan in a year. Only many people have found out they can't.
People who bought cars through the subprime schemes have been left with sky high interest rates.
When a CBC story garnered national attention, the reaction was instructive. Many blasted the borrowers, noting the idiocy that eroded their credit was also evident in the decisions to sign those deals.
Others rightly attacked the banks for exploiting the most financially vulnerable in such a predatory manner.
Both sides have a point. But if the buyers were stupid, they were stupid to trust a bank, whose practices are regulated by Ottawa.
The VSA is currently investigating complaints. We hope their review is thorough.
In the meantime, car buyers without much to spend would be well advised to do their homework before signing on the dotted line.
