TORONTO, ONTARIO--(Marketwired - Oct. 14, 2015) - ACORN Canada is sounding alarms due to Money Mart's entry into the installment loan market, and will be working with Toronto City Council to do something about it.
ACORN's Anti-Predatory Lending Campaign has successfully worked with several Canadian municipalities to use their zoning and licensing powers to limit the proliferation of predatory lenders, and are going to be working with city councillors in Toronto to do the same.
Next Thursday ACORN members will be visiting the payday and installment lenders during a march starting rally starting at a Cash Money location at Jane St. and Lawrence Ave. and ending at with a rally and speeches at the Money Mart at Jane St. and Trethewey Dr.
WHAT: March and Rally for Fair Lending and Better Banking
WHEN: March starts at 12:45PM. Rally at 1:15PM Thursday, October 5th, 2015.
WHERE: March starts at 1682 Jane St.; Rally starts at 1553 Jane St.
ACORN spokesperson (and installment loan victim) Donna Borden explains: "There are two tiers of banking in this country: One tier gets prime rates and no fee accounts, and the 2nd tier - the one for poor people - gets sub-prime rates and can't get real banks to give them the time of day. This must stop. It's why we are asking the City of Toronto to step in to do what the Federal Government is not - start putting an end to predatory lending."
Money Mart started offering installment loans at a few of its locations early in 2015, and due to the success of the predatory lending product, they offer installment loans at all of their locations in Ontario. Borden says, "Installment loans, a relatively new lending practice widely used in the USA, are unregulated in Canada and are becoming increasingly common in low-to-moderate income neighborhoods in Toronto. Installment loans, because they are over $1500, are not covered by payday lending laws, and because they are offered by companies that are not banks they are not covered by the Bank Act."