Boom times for NS poverty machine

Payday loans chief rakes in $2.2 million

Gordon J. Reykdal

Gordon J. Reykdal
  • Gordon J. Reykdal

Gordon J. Reykdal, CEO of Cash Store Financial is taking home nearly $2.3 million in pay and bonuses this year thanks to record profits in the payday loan industry. His son, Barret J. Reykdal, who serves as president of the company, earned $720,761. The information is contained in a management information circular released this week.

As of September 1st, the publicly traded company had 22 payday outlets in Nova Scotia, more than half the provincial total. It operates under the names The Cash Store and Instaloans and charges $31 per $100 on its short-term loans, the maximum allowed under Nova Scotia regulations. A recent Coast cover story reported that people who borrow $300 at that rate would have to repay $393 out of their next paycheque.

Cash Store Financial released figures last month showing the Alberta-based company took in record quarterly revenues of nearly $50 million in the three months ending September 30th — up almost 20 percent over the year before. The company’s net income in the same period was up 37.5 percent to $7.7 million from $5.6 million the year before. The figures also showed that the company opened 120 new outlets in just over a year for a Canada-wide total of 544.

Last month during public hearings on the payday loan industry, Gordon Reykdal urged the Nova Scotia Utility and Review Board not to lower the $31 per $100 maximum rate — the highest in the country. Consumer advocate David Roberts argued that Nova Scotia should adopt the Ontario rate of $21 per $100. So far, the UARB has not released its decision. Money Mart, The Cash Store’s main competitor, charges $19.50 per $100.

A rate of $31 works out to more than 800 percent in annual interest and fees compared to an annual rate of around 36 percent on credit card advances, 21 percent for bank account overdraft protection or 10 percent on a bank line of credit.

Support The Coast

At a time when the city needs local coverage more than ever, we’re asking for your help to support independent journalism. We are committed as always to providing free access to readers, particularly as we confront the impact of COVID-19 in Halifax and beyond.

Read more about the work we do here, or consider making a donation. Thank you for your support!

Comments (2)

Add a comment

Add a Comment

Get more Halifax

The Coast Daily email newsletter is your extra dose of the city Monday through Friday. Sign up and go deep on Halifax.

Recent Comments