The City of Toronto is considering proposed new interim rules for payday loan establishments and is inviting residents to share their views at a meeting on March 21.
The Province of Ontario governs payday lenders and alternative financial services such as cheque-cashing, instalment loans and rent-to-own services.
As of January 1, 2018, the Province’s Putting Consumers First Act provides municipalities with additional tools to regulate payday lenders. As a result, the City can now restrict the number and locations of payday loan establishments through business licensing.
The new rules being considered include:
• a new business licence category for payday loan establishments
• a cap on the number of establishments in Toronto, and
• a requirement that establishments must be licensed by the Province prior to applying for a City-issued licence.
This proposed approach will provide the City with a mechanism to stop the proliferation of these establishments while staff conduct a comprehensive review of the industry and its impact, and develop final recommendations for regulation of payday loan establishments.
The consultation will be held on Wednesday, March 21 from 6 to 8 p.m. at the North York Civic Centre in Committee Room 3, located at 5100 Yonge St.
Residents not able to attend the review are invited to provide comments to firstname.lastname@example.org.
A staff report will be considered by the City’s Licensing and Standards Committee on April 10.
More information about the review is available at https://www.toronto.ca/community-people/get-involved/public-consultations/#item/449.
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