Dijkema: Banning payday loan shops is not the answer

Dijkema: Banning payday loan shops is not the answer

Share this Story: Dijkema: Banning payday loan shops is not the answer

Mayor Jim Watson concerns in regards to a “glut” of pay day loan shops in Ottawa, and really wants to break straight down from the wide range of outlets within the town. Coun. Mathieu Fleury indicates these supposedly short-term loans put susceptible people in “even tougher financial circumstances.” There’s reason enough to be concerned. Research by the think-tank Cardus has discovered that payday lending is correlated with physical violence, home criminal activity, increased need of social support and increased early mortality.

That’s not saying that cash advance shops would be the reason behind these issues. Rather, payday financing is the one section of wider social challenges when it comes to town and loan customers. It’s important Ottawa Council make the right action to cope with it. Incorrect techniques could hurt the people whom need probably the most assist.

Dijkema: Banning payday loan shops is not the clear answer returning to movie

Let’s get one fact straight: When people with bad (or no) credit are eager for money, they’ll find methods for getting it. We understand through the research that the overwhelming most of those who look to pay day loans achieve this to fulfill fundamental needs. just 13 % utilize them for discretionary purposes.

Though pay day loans are costly and make the most of hopeless clients, they are usually cheaper for consumers than alternate types of small-dollar finance. Continue reading “Dijkema: Banning payday loan shops is not the answer”