Existing pay day loan companies is grandfathered in, but in the long run, they might decrease
The town of Hamilton is drafting a brand new legislation that would cap how many pay day loan places at 15.
Bylaw officials are working on a brand new separation that is radial permitting at the most one pay day loan or cheque-cashing company per ward. City council will vote about it in February.
Current companies will be grandfathered, generally there won’t be a instant huge difference, said Ken Leendertse, the town’s manager of certification.
However in the longterm, this new bylaw would decrease the amount of cash advance companies in Hamilton, he stated. It shall additionally stop them from establishing in areas with greater amounts of low-income residents.
“I do not think it is going to re solve the difficulty because individuals nevertheless require cash,” he said. But “it will restrict the visibility when you look at the rule red areas.”
At the time of Jan. 1, Ontario earned brand brand new laws that enable municipalities to generate their rules that are own the sheer number of high-cost loan providers, and exactly how far aside they truly are.
The laws additionally cap just how much companies that are such charge for loans. The fee that is old $18 per $100 loan. The fee that is new $15.
In Hamilton, high-cost loan providers are clustered around Wards 2 and 3 вЂ“ downtown and the main reduced town, claims the Hamilton Roundtable for Poverty Reduction.