Despite negative image cash advance industry claims it’s a necessary solution for marginalized Canadians
The findings of a new payday loan survey seem to confirm the obvious: most people say they only go to high-interest moneylenders because they have no alternative at first blush.
However the numbers raise another concern: Are main-stream banking institutions making huge number of marginalized Canadians behind?
It is a summary reached as an element of a Canadian Centre for Policy Alternatives paper released Monday highlighting a study of 268 people in ACORN, a nationwide company of low and moderate earnings families. ACORN is a vocal critic of this cash advance industry.
Almost all participants stated they looked to high interest economic services simply because they could not get credit or overdrafts from their banking institutions.
Many additionally said they require short-term infusions of money to fund meals and housing or just to “alleviate poverty.”
“the outcomes of the study show that the banking institutions, through doubting low- and families that are moderate-income to credit, are driving individuals to access fringe high-interest items like pay day loans, installment loans and much more,” the paper concludes.
‘Ineligible to get more credit’
While ACORN plus the Centre for Policy Alternatives may work as advocates, the outcome of the research echo outcomes of research released last thirty days because of the Financial customer Agency of Canada (FCAC).