Payday Loan Companies May See New Location Limits

Council plans to formalize the entire decision committee on September 27

The number of payday loan companies in Guelph will be capped in the future, if the full council committee succeeds.

In a Tuesday afternoon meeting, the committee approved new rules that would prevent these businesses from clustering together and keep them away from schools and parks.

“Some of our most vulnerable citizens have no other choice,” Coun said. James Gordon spoke about getting short-term, high-interest loans. “We owe it to people to find alternatives. “

Gordon’s comment focuses on a few lines from the staff report that recommends board staff work with community partners to help find alternative ways to access low-cost financial products and services.

However, such leadership is not necessary, Gordon said, as the staff will take responsibility for these efforts anyway. In turn, the committee gave no direction to staff on this front.

The city currently has eight provincially licensed payday lending establishments – three in Ward 4, two in Ward 2, none in Ward 6, and one each in Quarters 1, 3 and 5.

If the board formalized the committee’s decision later this month, those companies would all be allowed to continue operating as-is until they are sold or change locations. This is when new rules will come into effect.

A regulation is expected to be in place by Jan. 1 that prohibits new payday loan businesses from locating within a mile of each other or within 150 yards of a school or public park.

The license costs $ 641 for the first year, with annual renewals of $ 400.

The provincial government granted municipalities the ability to limit the location and quantity of payday loan businesses in 2018.

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About Christopher Easley

Christopher Easley

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