Leo Sorensen the head of Loans 'Til Payday, claimed while appearing before Manitoba's Public Utilities Board that "he has every right to charge borrowers interest rates of more than 700 per cent".
Sorensen believes that businesses should be allowed to charge what they want, and that the payday loan industry should not be subjected to government regulation. Sorensen refers to the impending regulation of the industry as "a socialist approach".
Sorensen freely admitted that his 30 stores across western Canada routinely charge what works out to 720% annual interest on loans. He indicated that even at this rate, his company can barely cover its costs.