Advocates want number of payday loan stores reduced in Burnaby

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BURNABY (NEWS1130) – Burnaby should take Surrey’s approach to cut down on payday loan stores according to those attending a Tuesday rally protesting current regulations governing cheque cashing centres.

Monica McGovern with the group ACORN says the city has a big problem with these types of money-lending businesses, especially along the Kingsway corridor.

“They are predatory practices basically and we want the city to move on it, we are urging city council to look at limiting and putting distance between these places,” she explains.

“Surrey has done that, Acorn had a campaign in Surrey and they are limiting [payday loan centres], they have to be 400 metres from each other and they are putting a cap on how many can open,” McGovern adds.

Thomas Davidoff with UBC Sauder School of Business says that is likely to happen.”I suspect there will be regulations both in terms of nuisance potentially and in terms of looking out for consumer protection.”

“I would not be at all surprised to see further regulations if these entities, which have grown and become very profitable in the US, decide to expand in big numbers in Canada,” he adds.

ACORN is concerned the money-lending businesses take advantage of people with low-incomes who would never be able to repay the money with such high interest rates.

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