Hamilton becomes first city to target payday loan outlets

News Mar 01, 2018 by Kevin Werner Stoney Creek News

Hamilton has become the first municipality in Ontario to limit the number of payday loan outlets in its community.

On Feb. 28, Hamilton councillors approved a recommendation to cap the number of businesses to one per ward, for a total of 15. Councillors approved an amendment, introduced by Flamborough Coun. Judi Partridge, which would ban any type of payday loan outlet in rural areas. Under the bylaw, existing payday loan outlets will be grandfathered.

“We have done everything we can under the Municipal Act,” said Ward 3 Coun. Matthew Green. “This will not eliminate payday loan outlets. It is a symptom of a predatory capitalistic product. We have more of these than Tim Hortons.”

Green has been urging the city for nearly two years to reduce the number of payday loan outlets in the city. He has said the businesses “prey” on low-income people with fixed incomes, essentially “extorting” money from them.

Payday loan outlets have been known to charge exorbitant interest rates. For instance, a $300 loan can translate into $1,638 in interest annually.

Tom Cooper, director of the Hamilton Roundtable for Poverty Reduction, has said these businesses are located in low income areas of the city where banks and credit unions have left. He said the recommendations, which established a radial separation bylaw for the businesses, will make a difference.

The city currently licenses 30 payday loan outlets, with most of them located in the downtown.

“This is really profiteering,” said Cooper.

Mayor Fred Eisenberger said Hamilton’s limited efforts to curtail payday loans is hindered by current legislation.

He said the city has previously used radial separation to limit the number of adult entertainment clubs and now there is only one establishment left.

“This is what we can do,” he said.

Tom Irwin, president and chief executive officer of the Canadian Consumer Finance Association, previously identified as the Canadian Payday Loan Association, has stated Hamilton’s decision will impact people’s ability to acquire money.

“I think the issue really should be more about encouraging alternatives,” he recently said.

On Jan. 1, the province introduced new rules under Bill 59, the Putting Consumers First Act, allowing municipalities to regulate the location and number of payday loan businesses.

Mountain Coun. Tom Jackson said by eliminating payday loan outlets, it is now up to banks and credit unions to assist low income people.

“I’m a bit cynical and skeptical they will fill the void,” he said.

Hamilton cracks down on payday loan outlets

News Mar 01, 2018 by Kevin Werner Stoney Creek News

Hamilton has become the first municipality in Ontario to limit the number of payday loan outlets in its community.

On Feb. 28, Hamilton councillors approved a recommendation to cap the number of businesses to one per ward, for a total of 15. Councillors approved an amendment, introduced by Flamborough Coun. Judi Partridge, which would ban any type of payday loan outlet in rural areas. Under the bylaw, existing payday loan outlets will be grandfathered.

“We have done everything we can under the Municipal Act,” said Ward 3 Coun. Matthew Green. “This will not eliminate payday loan outlets. It is a symptom of a predatory capitalistic product. We have more of these than Tim Hortons.”

Green has been urging the city for nearly two years to reduce the number of payday loan outlets in the city. He has said the businesses “prey” on low-income people with fixed incomes, essentially “extorting” money from them.

Payday loan outlets have been known to charge exorbitant interest rates. For instance, a $300 loan can translate into $1,638 in interest annually.

Tom Cooper, director of the Hamilton Roundtable for Poverty Reduction, has said these businesses are located in low income areas of the city where banks and credit unions have left. He said the recommendations, which established a radial separation bylaw for the businesses, will make a difference.

The city currently licenses 30 payday loan outlets, with most of them located in the downtown.

“This is really profiteering,” said Cooper.

Mayor Fred Eisenberger said Hamilton’s limited efforts to curtail payday loans is hindered by current legislation.

He said the city has previously used radial separation to limit the number of adult entertainment clubs and now there is only one establishment left.

“This is what we can do,” he said.

Tom Irwin, president and chief executive officer of the Canadian Consumer Finance Association, previously identified as the Canadian Payday Loan Association, has stated Hamilton’s decision will impact people’s ability to acquire money.

“I think the issue really should be more about encouraging alternatives,” he recently said.

On Jan. 1, the province introduced new rules under Bill 59, the Putting Consumers First Act, allowing municipalities to regulate the location and number of payday loan businesses.

Mountain Coun. Tom Jackson said by eliminating payday loan outlets, it is now up to banks and credit unions to assist low income people.

“I’m a bit cynical and skeptical they will fill the void,” he said.

Hamilton cracks down on payday loan outlets

News Mar 01, 2018 by Kevin Werner Stoney Creek News

Hamilton has become the first municipality in Ontario to limit the number of payday loan outlets in its community.

On Feb. 28, Hamilton councillors approved a recommendation to cap the number of businesses to one per ward, for a total of 15. Councillors approved an amendment, introduced by Flamborough Coun. Judi Partridge, which would ban any type of payday loan outlet in rural areas. Under the bylaw, existing payday loan outlets will be grandfathered.

“We have done everything we can under the Municipal Act,” said Ward 3 Coun. Matthew Green. “This will not eliminate payday loan outlets. It is a symptom of a predatory capitalistic product. We have more of these than Tim Hortons.”

Green has been urging the city for nearly two years to reduce the number of payday loan outlets in the city. He has said the businesses “prey” on low-income people with fixed incomes, essentially “extorting” money from them.

Payday loan outlets have been known to charge exorbitant interest rates. For instance, a $300 loan can translate into $1,638 in interest annually.

Tom Cooper, director of the Hamilton Roundtable for Poverty Reduction, has said these businesses are located in low income areas of the city where banks and credit unions have left. He said the recommendations, which established a radial separation bylaw for the businesses, will make a difference.

The city currently licenses 30 payday loan outlets, with most of them located in the downtown.

“This is really profiteering,” said Cooper.

Mayor Fred Eisenberger said Hamilton’s limited efforts to curtail payday loans is hindered by current legislation.

He said the city has previously used radial separation to limit the number of adult entertainment clubs and now there is only one establishment left.

“This is what we can do,” he said.

Tom Irwin, president and chief executive officer of the Canadian Consumer Finance Association, previously identified as the Canadian Payday Loan Association, has stated Hamilton’s decision will impact people’s ability to acquire money.

“I think the issue really should be more about encouraging alternatives,” he recently said.

On Jan. 1, the province introduced new rules under Bill 59, the Putting Consumers First Act, allowing municipalities to regulate the location and number of payday loan businesses.

Mountain Coun. Tom Jackson said by eliminating payday loan outlets, it is now up to banks and credit unions to assist low income people.

“I’m a bit cynical and skeptical they will fill the void,” he said.