Behind the Numbers. Pay day loans and bank double standards

Behind the Numbers. Pay day loans and bank double standards

Earnings inequality is mounting in Canada, making an currently inexcusable wide range gulf even even worse.

Along with wealth comes privilege — especially in Canadian banking.

Low-income residents of Canada face an important dual standard whenever it comes down to accessing banking services despite urgently wanting them, based on a study of 268 ACORN Canada users, whose findings had been posted today because of the Canadian Centre for Policy Alternatives’ Ontario workplace.

The study outcomes reveal numerous have already been rejected use of extremely fundamental banking services — such as for example cheque cashing or overdraft protection — from traditional banking institutions.

But we have all for eating. And rest. Then when the banking institutions will not provide a connection over booming monetary water, many low-income people seek out payday loan providers to ferry them across. However the cost is high: astronomical rates of interest, some up to 500 % await them on the reverse side.

1 / 2 of the surveyed ACORN members looked to predatory storefronts that are lending cash a cheque. One out of three went for meals cash. Another 17 percent needed money to cover the lease.

Who will be these low-income residents of Canada looking at present day loan sharks? They’re individuals you could see every single day. Many of them, certainly several of the most people that are vulnerable Canadian culture, get fixed incomes such as social help, impairment payment and/or pensions. Other people work — 18.7 % of them hold full-time employment and 13.6 per cent toil part-time — but still don’t impress Bay Street enough when it comes to bankers to provide them solution.

Read moreBehind the Numbers. Pay day loans and bank double standards