MISSISSAUGA, Ontario, March 01, 2021 (GLOBE NEWSWIRE) – The Independent Payday Loan Association of Canada (IPLAC) considers it necessary to respond to ACORN Canada’s inaccurate report “Study on High Interest Loans – A Report” and CTV’s report “Payday Loan Usage Rising Amid COVID-19 Pandemic, New Survey Says.”
On February 17, 2021, local media reported on television and the web demonstrations against “predatory loans” led by the anti-poverty militant group. Much of the information in this report comes from their report, the content of which has vilified the payday lending industry, calling for additional aggressive laws and regulations. It also included a wish list for banks, inaccessible to many users of payday loan services.
“The report creates fear, mistakenly confusing short-term fees with long-term interest, and conflating well-regulated payday loan products with less regulated installment loans and title deeds,” said Patrick Mohan, president of IPLAC.
The report also suggested a level of dissatisfaction with payday loans that is significantly higher than reported in the industry’s own regular customer service surveys.
In particular, the inference from the reports is that our clients are victims of “predatory loans”. IPLAC members provide excellent customer service and are completely transparent and open about the regulated fees associated with their products. Our clients work hard and work but don’t have access to standard lending channels. They are most often grateful and happy that they can visit the store, on average, three to four times a year to borrow a few hundred dollars for a week or two.
Worse, the report proposes additional regulations to increase costs for our members, some of whom have already left the market after the latest round of government restraints. These recommendations would prevent our clients from accessing a legal and government-regulated channel to meet their short-term needs. But the alternative, with banks offering more and better products to low-income customers, is almost fantastic. Banks are specially structured to avoid serving our customers. It would appear that the report suggests that our clients are simply enduring, losing their jobs, their homes and their health.
Payday lenders are often the lenders of last resort for a small, short-term unsecured loan. Our customers understand this and understand the costs associated with providing this service. And they’re happy that when they need help, we’re there, early in the morning and late at night.
IPLAC asks the Canadian media to provide an accurate and balanced view of our industry and to show the benefits we provide to our clients. In addition, we ask that they pay the respect due to those who turn to IPLAC members when they are rejected by banks and other financial institutions. They are smart, hard-working individuals who don’t deserve the coverage they get.
At IPLAC, we are a group of short term lending organizations owned by Canadian operators and reflecting the value of responsible lending.
Our mission is to work with stakeholders, lawmakers and regulators to create a safe and legally regulated environment where clients can borrow money when large institutions do not allow them.
IPLAC members ensure that all of their clients are treated fairly and equitably. Our members provide important services to everyone, regardless of race, ethnicity, orientation or economic status.
About Patrick Mohan
Patrick Mohan is President of the Independent Payday Loan Association of Canada, President and CEO of Money Direct Financial Services Inc.
Patrick is a valued member of several public and not-for-profit boards, with a focus on governance and communications. Patrick built Money Direct organically in nine stores, debt free and with exceptional customer satisfaction.