ACORN Canada

ACORN Canada

September 12, 2013 10:38 ET

Media Advisory: ACORN Canada: Overdue Policy Review of Payday Loan Act a Chance to Truly Protect Consumers

TORONTO, ONTARIO--(Marketwired - Sept. 12, 2013) - The announcement by the Ministry of Consumer Services is welcomed by ACORN Canada.

Spokesperson Edward Lantz of Toronto ACORN stated after learning about the policy review: "As an organization of low-to-moderate income people in Ontario, it is common for ACORN members to come to meetings with horror stories about getting suck into a traps at a payday lender. Our people still get roll over loans, they are still ripped off with extra hidden fees, they still pay usurious rates, and payday loans are a very much still a predatory financial product that drains money out of our communities. While we are proud that we were influential in getting the Payday Loan Act passed in 2008, we knew then what we know now: The act needs to do a better job really protecting Ontarians."

ACORN Canada recommended to the Ministry of Consumer Services in lead up to the passing of the Act:

  • That the interest rate charged to payday loan consumers should not exceed a 10$ fee + an annual interest rate of 60%.
  • That the term of the loan needs to be longer, and allow for people to pay the loan back in installments.
  • Those payday loans outlets be licenced and subject to inspections in order to proactively prevent violations of the act.

ACORN Canada will be playing a central role for Ontario payday loan consumers during the policy review and will be further studying recommendations for the Ministry to follow.

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