PIAC Media Releases |
![]() |
Tell us your story!
Please contact us with your stories and questions.
|
New PIAC Report: Enhancing Protection for Payday Loan Users in Canada
OTTAWA – A new research report published by the Public Interest Advocacy Centre (PIAC) shows that many payday loan users remain unaware of their rights, and find it difficult to calculate payday loans’ high interest rates and costs. Repeat borrowing and continuous debt-cycles continue to prevail, with many users uninformed on how to deal with debt cycles, and better manage their finances.
The research indicates that the existing government resources on payday loans, i.e., provincial information websites and complaint filing processes may be underused, as many payday loan users do not know of their existence. “Payday loan users’ lack of awareness about their rights and existing redress systems is concerning, given the alarmingly high interest rates and costs of payday loans, it’s about time that prompt action is taken to address this information deficit,” said Tahira Dawood, Policy and Research Analyst at PIAC.
Other redress mechanisms for addressing payday loan issues, which the Report also studied, remain problematic. Actions such as filing a claim in small claims court is, relative to the amounts involved and the means of payday loan uses, costly, time-consuming and burdensome. Complaints made directly to payday lenders, while helpful to some borrowers, presently lack the transparency and accountability needed to adequately protect the vulnerable users of payday loans. At the time of research, no easily accessible public data was found concerning the number and nature of payday loan complaints made, their response times and outcomes.
“Payday loans are ‘expensive’ for customers because the repayment is due so soon, not just because the interest is high,” said John Lawford, Executive Director and General Counsel, PIAC. “Payday loan customers make better financial choices when this obscure fact is made clear – and they can learn fast and start saving money right away,” he added.
The report’s key suggestions therefore are:
To see the full report, please see the following link.
To see the sample user-friendly guide prepared by PIAC, please see the following link.
The Public Interest Advocacy Centre has received funding from the Law Foundation of Ontario, under its Access to Justice Fund (ATJF). While financially supported by The Law Foundation of Ontario, the Public Interest Advocacy Centre is solely responsible for all content.
For more information please contact:
John Lawford
Executive Director and General Counsel
Public Interest Advocacy Centre (PIAC)
Tel: 613-562-4002 x 25
jlawford@piac.ca
Tahira Dawood
Policy and Research Analyst
Public Interest Advocacy Centre (PIAC)
Tel: 613-562-4002 x 23
tdawood@piac.ca