The City of Maple Ridge has taken a step to eliminate, what one councilor calls ” the cycle of poverty in his community.”
Tyler Shymkiw says council passed a bylaw prohibiting any new payday loan companies from setting up stores in that community.
“A lot of our neighbours, a lot of our friends that are on social services end up every cheque going to payday loan store to try and pay off a piece of the one they got last month.”
Shymkiw hopes the province, which he says regulates the payday companies, will make some changes in the coming years.
“These ‘near banks’ are following the rules that we’ve laid out for them, but at the provincial level and the federal level, we need to roll out much more robust safeguards for our communities.”
Shymkiw says some of these “near banks” charge as much as 23% for a fourteen day loan, which works out to be about 600% a year.