Pay day loans and bank double requirements

Earnings inequality is mounting in Canada, making a already inexcusable wealth gulf even even worse.

In accordance with wide range comes privilege — especially in Canadian banking.

Low-income residents of Canada face a substantial dual standard whenever it comes down to accessing banking solutions despite urgently wanting them, relating to a study of 268 ACORN Canada users, whoever findings had been posted today by the Canadian Centre for Policy Alternatives’ Ontario workplace.

The survey outcomes reveal numerous were rejected use of really banking that is basic — such as for instance cheque cashing or overdraft protection — from traditional banking institutions.

But we have all to consume. And sleep. When the banking institutions will not offer a connection over booming water that is financial numerous low-income people seek out payday loan providers to ferry them across. However the cost is high: astronomical interest levels, some up to 500 percent await them on the reverse side.

50 % of the surveyed ACORN members looked to predatory lending storefronts to cash a cheque. One out of three went for meals cash. Another 17 percent required money to cover the rent.

That are these low-income residents of Canada looking at day that is modern sharks? They’re individuals you might see each day. A lot of them, certainly several of the most susceptible people in Canadian culture, get fixed incomes such as for instance social assistance, impairment payment and/or pensions. Click here to read more »