City Council is considering a motion to space out payday loan shops. The motion would force money stores to be separated by at least 400m and increase the licence fees from $1000 to $3000. The motion was seconded by Frances Nunziata.
There are at least 10 cheque-cashers and two pawn shops in Weston. This bylaw would not affect them; it will only affect new businesses.
The law will reduce the number of cheque cashing businesses, but will likely enrich the existing owners by reducing competition.
The motion would also ask the province to reduce the interest rate to 35%. It will also build encourage credit unions and banks to set up (or not leave) priority communities, like our own.
Finally, it will ask the feds to look into a postal bank—an idea recently championed by ACORN in Weston.
It’s not every day you see an MP working to strangle one of the only thriving business sectors in her riding. Still, it’s hard to disapprove of Laura Albanese’s efforts to strengthen credit unions and weaken cheque-cashing stores, measures that got a big boost in yesterday’s budget; her proposals were one of the signature announcements.
Albanese’s rules will make credit unions more competitive by changing deposit-insurance rules; reducing barriers to doing business with cities, universities, schools and hospitals; and “providing consumers with alternatives to high-cost payday loans.”