Could Dunlop Street Payday Loan Outlets Operate on Borrowed Time?

“Businesses, landlords and other tenants find it difficult to operate or open or do business with them present on the main street,” Coun said. Sergio Morales

Cashing New Payday Loans Facing Dunlop Street in Barrie both east and west will be on the plate of municipal councilors Monday evening.

Com. Sergio Morales has put on the agenda a motion for discussion that city staff will report regarding the restriction of payday lending facilities along Dunlop Street when the city’s updated zoning by-law is presented to councilors from Barrie for review this fall.

“The goal is to restrict them to… being able to open into a space overlooking Dunlop Street. It doesn’t exclude them from the city center, ”Morales said. “Some people have … a moral objection to them, some people say they should be regulated, in terms of interest rates or just banned by the provincial or federal government.” It’s a different discussion.

Ward 9 councilor says there are few payday loan companies on Dunlop Street, so now is the time to narrow them down.

“Businesses, landlords and other tenants find it difficult to operate or open or do business with them (payday lending establishments) on Main Street,” Morales said of Dunlop Street.

“My intention is not to prevent them from actually existing, but… especially as the West End is redeveloping and trying to get out of COVID, I think the intention of the motion is to try to make it easier and trying to build a bit of critical mass in the west with a good mix of businesses, like the east of downtown Barrie, he added.

Com. Keenan Aylwin, who represents downtown, says he will propose changes to Morales’ motion on Monday.

“I don’t think the motion goes far enough and will seek to introduce an amendment,” Aylwin said. “I think we need to take a closer look at restricting payday lending facilities across town, but particularly downtown. These companies prey on vulnerable people, often trapping them in a cycle of crushing debt by imposing exorbitant interest rates.

“These predatory businesses are often concentrated in low-income neighborhoods,” he added. “The province gave municipalities the power to restrict payday lending facilities in 2018. It’s time for Barrie to reflect on how these businesses are harming people in our community.

Morales says the restrictions could be imposed through zoning or city bylaws, whichever is more effective. He also said there had been no pressure from downtown merchants to do so and that it was unrelated to the Downtown BIA, an organization he chairs.

“I think we’re all arguing for creating critical mass for the west end of Dunlop Street,” said Morales, which he says extends just beyond the barracks. Barrie No. 1 Fire Department. “There just isn’t enough critical mass of an effective mix of businesses to give people a reason to go west and stay west.

“It’s a very small thing in the direction,” he added.

There is only one such establishment that is open and faces Dunlop, Pay2Day at 79 Dunlop St. W. An employee there said Barrie today the manager was on vacation and he was not allowed to speak.

But Manjeet Virk, deputy manager of Cash ‘UR’ Check at 5 Clapperton St., near Five Points, said any restrictions on the area would be bad for business, especially given the effects of the pandemic.

“It’s going to be trouble, a lot of trouble,” he said. “These businesses carry so much risk. If they have to be limited, there will be a lot of expense. ”

Virk mentioned marketing, advertising and infrastructure.

“It doesn’t matter if it’s a payday business or a restaurant, every business suffers,” he said.

The Financial Consumer Agency of Canada, an arm of the federal government, defines a payday loan as a short-term loan with high fees which makes it a very expensive way to borrow money. You can borrow up to $ 1,500, but you must repay the loan on your next paycheck, according to the agency. You have up to 62 days to pay it off in Ontario, Manitoba, New Brunswick, Alberta and British Columbia.

Payday loans are meant to cover a lack of cash until your next salary or for a short period, depending on the agency. These loans should be avoided for everyday expenses such as rent, groceries, or utility bills.

Private companies offer payday loans in stores and online.