TORONTO, ONTARIO and OTTAWA, ONTARIO and METRO VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 3, 2016) - A survey of ACORN Canada members who turn to high interest fringe banking services, such as payday and installment lenders, shows the majority do so because they are denied adequate services from traditional banks.
The survey of 268 ACORN Canada members, whose findings were published today by the Canadian Centre for Policy Alternatives, reveals the majority of respondents who have drawn on high interest shadow banking loans had nowhere else to turn.
Toronto: Mon. Dec. 5 at 11:00am – ACORN office (1324 Danforth Ave.)
Ottawa: Mon. Dec. 5 at 12:00pm – Hannah St. & Montreal Rd., downtown Ottawa
New Westminster: Mon. Dec. 5 at 12:00pm – Scotiabank, 728 Columbia St. (New Westminster)
"People use payday loans to avoid high bank fees. $21 for $100 is cheaper than a $45 NSF fee on a $100 cheque bouncing at the bank. It's unacceptable that banks are driving people to high interest lenders. And then banks' Investment Companies – such as RBC Global Investments – hold shares in high interest installment lenders like GoEasy. It's two tiered banking! And it needs to end!" Donna Bordon
Among the survey's key findings:
- 47% of survey respondents say they use high interest financial services to access money for food or housing;
- 45.3% said they turned to a high interest financial service because they had no overdraft protection on their regular bank account;
- Close to 25% had taken out Installment or Title Loans
- 20 per cent used the service to make a rent-to-own purchase
ACORN members want the federal government to show leadership with the Financial Consumer Code, however, the details of recent changes to the Bank Act in Bill C 29 are a disappointment. ACORN members want access to fair credit, affordable financial services and an anti-predatory lending strategy.
The report will be posted at acorncanada.org/predatory-lending-report on Monday am.
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 83,000 members in more than 22 communities working together for social and economic justice.