ACORN Canada

ACORN Canada

September 05, 2016 14:00 ET

ACORN Canada Presses Big Banks and Investment Companies to Stop Investing in Predatory Lending Companies

TORONTO, ONTARIO--(Marketwired - Sept. 5, 2016) - On Tuesday September 6, 2016, ACORN Canada members in Ottawa, Toronto, and Vancouver are organizing a coordinated Day of Action to demand that major Canadian financial institutions and investment companies stop investing and directing investment into high, interest, predatory companies like easyfinancial and easyhome; and end banking practices that generate profits off of Canada's lowest-income families.

A simple online search has revealed that major Canadian financial institutions, including RBC Global Asset Management and National Bank Trust, are major shareholders in a Canadian-based fringe financial service company that exploits the economic vulnerability of Canada's lowest-income citizens. The company, goeasy Ltd., is the parent of predatory lending companies easyhome and easyfinancial. easyhome and easyfinancial are known for providing high interest loans that put struggling Canadians into crushing cycles of debt. Interest rates and fees on a loan from easyfinancial could reach close to 60%, the maximum allowed by Canada's Criminal Code. Borrowers are also often pressured to take out insurance on loans, which is then financed into the loans themselves. One ACORN member reported being charged $3000 for insurance on a $4,000 loan from easyfinancial.

"It's immoral and unethical that some of Canada's largest financial institutions are directing investors to companies that exploit Canada's most financially vulnerable people," says Donna Bordon, ACORN Leader. "Big banks should be making it easier for low-income people to attain financial security. They should not be promoting companies whose business models depend on getting people into insurmountable cycles of debt."

ACORN Canada members are demanding that Canadian financial institutions and investment companies stop investing, or directing investor to invest, in fringe financial institutions that exploit low-income Canadians.

ACORN Canada - the Association of Community Organizations for Reform Now, Canada - is among the nation's largest organizations of low- and moderate-income families, with over 80,000 members in more than 20 communities working together for social and economic justice.

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