Association of Community Organizations for Reform Now
273 Rue Emond St. Ottawa Ontario, K1L 7R9
ACORN Members Demand Fair Payday Loans Now:
Return our $18 million dollars!
For Immediate Release
Ottawa – ACORN members across Ottawa will rally together on January 29th to hold the payday loan industry
accountable for changing illegal interest rates and brokerage fees. Companies like The Cash Store, owned by
Rent Cash, routinely charge 150%-900% interest annually on payday loans, taking advantage of low and
moderate income families across Ontario who need to put food on the table.
If ACORN’s framework for regulation of the payday lending industry was adopted by the Government of
Ontario it would return $51,248,333.33 to low and moderate income communities across Ontario and Rent
Cash alone would have to return an estimated $18,430,000 to struggling working families across Ontario.
WHAT: Protest and Photo/Video Opportunity at The Cash Store
WHERE: 253 Bank St, The Cash Store
WHEN: 2:00PM, Tuesday January 29th
WHO: Organized by Ottawa ACORN
WHY: Criminal Interest Rates and Unfair Loans
“Have You Got Loan Sharks?”
Call Ottawa ACORN to Get Rid of Loan Sharks and Two Tier Banking in Your Neighborhood!
ACORN Canada has been leading the fight for the regulation of the predatory payday lending industry
across Canada for nearly 4 years. We strongly encourage the Province of Ontario to review the regulatory
strategy set out by ACORN and Chris Robinson, the leading economist on payday lending (its available at
www.canada.acorn.org >reports). In it, Professor Robinson and ACORN lay out a framework that curbs the
predatory nature of the industry and dramatically reduces the cost structure of payday loans for consumers while
still allowing the industry to exist as last resort source of credit for low income families.
Professor Robinson and ACORN recommended that payday lenders be allowed to charge a fixed fee of
$10 plus interest charged at an annual rate no higher than 60%, plus a fee that is a fixed percentage of
the dollar amount of the loan no larger than 5%.
ACORN members also want to see the following points in any regulatory strategy;
Licensing of lenders by a government body with the power to deny, revoke, and suspend licenses
Ban on rollover loan and 30 day cooling off period after every loan
Maximum loan amount of $500 or 25% of customers net income for term of the loan
All loan recipients should receive a brochure produced by licensing body explaining their rights and
responsibilities as consumers and a 1-800 number for consumer concerns and complaints
ACORN members in Ottawa such as Roy Anderson who lives in Vanier on a small pension, is a victim of the
payday loan industry and says he wants “the government to intervene right away” because “these companies
circumvent the law, charging extraordinary high interest rates and we want the government to regulate them at a
reasonable amount.” He adds that “there is a need for government action right away, as in now.”
John Redins, ACORN member from Ottawa South, agrees: “These companies don’t think they’re loan sharking
and we need the provincial government to deal with this problem now.” John has used payday loans to help pay
his rent and support his family, becoming yet another victim of criminal industry. Loan sharking is infesting
neighbourhoods across Ottawa such as Vanier and near Ottawa South and ACORN members such as Roy and
John are working hard to pressure the government for regulation and divestment.
ACORN members in British Colombia have just celebrated victory in this campaign, moving their provincial
government to introduce legislation that regulates payday loan companies. In the coming months, members
across Ontario will be actively campaigning for regulation from this Liberal government as well as demanding
that large banks such as Scotiabank to divest in the payday loan companies such as Rent Cash/The Cash Store.
For more information:
Contact Roy Anderson or John Redins or Erin Albright, ACORN leaders
Contact Jill O’Reilly to speak to ACORN members in both French and English
Office: (613) 746-5999
Mobile: (613) 808 6523