They are sending out letters to their clients scaring them by saying that they won’t be any alternative and this lending industry will cease to exist! Many low- and moderate-income people are forced to go to lenders such as Easy Financial, Cash Money, Money Mart and others that are legally allowed to charge 60% Effective Annual Rate (equivalent to approximately 48% in Annualised Percentage Rate ba. [...] ACORN and Momentum are encouraged to see the government moving ahead with the commitment it made in Budget 2023 to modestly lower the criminal interest rate from 48% APR to 35% APR and would like to see it reduced further. [...] The submission made by the Canadian Payday Lenders Association (CLA) to the federal government alleges how the Canadian predatory lenders are offering help to people in need and that lowering the interest rates will harm people. [...] Position of ACORN and Momentum This position is based on experiences of ordinary people who are denied access to credit by banks and are left with no choice but to go to predatory lenders. [...] It's common for ACORN members to experience illegal practices that these lenders resort to such as going to people’s homes, calling the family of the borrower or harassing people by other means to get their money back, deeply compromising an individual’s right to privacy and confidentiality.
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