Toronto will no longer issue licences to payday lenders
The City of Toronto decided that it will no longer provide licences to payday lenders.
The City of Toronto will no longer hand out licences to payday lenders, and will prevent the establishments from advertising on city-owned property.
City council voted to end the issuing of the licences amid concerns that the services are taking advantage of low-income residents by charging hefty fees.
“Their services shortchange those in need,” Councillor Anthony Perruzza said.
“We want the public to seek the financial empowerment supports that help them make better decisions, not to be taken advantage of when they're in a desperate situation."
The city's decision to ban establishments from advertising on city-owned property, includes its agencies, boards and commissions, such as the Toronto Transit Commission (TTC).
The council also made a number of other recommendations to deal with the industry, including one that asks lenders to provide customers with “city-sanctioned information” on financial empowerment supports available to them.
The decision and recommendations came after a committee report from August 2019 looked into Toronto’s controversial payday loan industry.