According to a recent Bloomberg Survey, 37% of insolvencies in Ontario involved a payday loan (source)
Worse still, the report suggests that the numbers are getting worse. The loans are getting bigger, and more people are falling into the trap. Because, let's face it; it is a trap.
While things are different in BC, they are not necessarily better. With a cooling real estate market, Canada on the brink of recession, and jobs increasingly moving to the "gig economy", the need for fairer solutions to banking is growing daily. The market of the precarious is lucrative for exploitative payday lending institutions. The BC government just announced that it is moving to protect some consumers with new proposals to regulate this sector, which is to be applauded.
CCEC offers emergency small-dollar loans to its members in an attempt to offer a more viable alternative. But we need policy change; which is why we support ACORN and their pleas for fair banking measures to be brought front and centre.
Add your name to the push, and tell your local MP to step up! https://www.acorncanada.org/take-action/tell-your-mp-its-time-fair-banking