Payday Lending

Collaborative efforts are calling on reforms to address the impact of the use of payday loan and fringe financial businesses on low-income Calgarians.  In The Real Cost of Payday Lending, research found that payday lenders charge interest rates that top 400% when annualized and are largely located in lower income neighborhoods.  A collaborative known as the Rise of the Cash Store Committee was convened to work with all orders of government to explore policy recommendations that could change the tides on the exploitative practices found within the payday lending industry.  Recommendations included changing the allowable density of payday lending businesses in any given area, convene banking institutions to offer affordable products and services at reasonable interest rates and to reduce interest rate levels below the federal 60% maximum.