Payday Lending & Remittances

Learn more about ACORN Canada's groundbreaking campaigns regulate payday lending and international remittances and money transfers.

Canadian Business: Cash Store at a crossroads

CB cash-store-300x199With 511 storefront locations in Canada and another 25 in the U.K., the Cash Store Financial Services Inc. is easily this country’s largest homegrown purveyor of payday loans. So when the company announced in February that it was giving up payday lending in Ontario—by far its largest market—some were understandably confused; this would be like McDonald’s giving up not just hamburgers, but food.

CBC: Ontario wants to revoke licence of payday cash stores

CBC News has learned that the Ontario government is going to try to revoke the licence of Cash Store Financial Services, one of the biggest cash advance stores in the country.

The Ontario Ministry of Consumer Affairs alleges that the company broke Ontario's Payday Loans Act, which limits the fees payday loan companies can charge.

Cash Store Financial Services has 200 outlets in Ontario alone: branded as InstaLoans and The Cash Store.

They operate in 19 different communities in the province.

Survey of Remittance Users in Ontario: July – October 2012

remittance campaign graph nov 12 2012Summary 

  • 154 of the 229 survey participants indicated how much they were charged. The participants were also asked how often they sent money abroad.
  • When the fees were calculated as a percentage of the amount sent, the data clearly showed that people who send less money are charged a much higher rate than people who send a larger amount of money. On average people who send $100 or less are charged 13.26% compared to people who send over $500 who are charged on average 1.84%.
  • Of the 186 survey participants who reported how much they sent per transaction:
    • 60 reported they sent $100 or less (32%)
    • 106 reported that they sent $200 or less (57%)
  • Of the 229 survey participants who responded to the question “Is the exchange rate fee included in the fees?”
    • 55 indicated that they did not know (24%)
    • 36 said the exchange rate fee was not included in the original fee (16%)
    • 111 said the fees were all lumped together (48%)
    • 27 did not answer the question (12%)
  • Of the 229 participants, 189 sent remittances at least once a year (83%)
  • Of the 189
    • 22 sent 1 time
    • 20 sent 2 times
    • 28 sent 3-5 times
    • 27 sent 6 times
    • 80 sent 12 times
    • 10 sent 24 times
  • The participants were sending money to 37 different countries.

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