IPLAC responds to inaccurate, insulting CCPA report. “Our customers are hardworking, informed and intelligent.”

IPLAC responds to inaccurate, insulting CCPA report. “Our customers are hardworking, informed and intelligent

MISSISSAUGA, Ontario, June 04, 2020 (GLOBE NEWSWIRE) — The Independent Payday Loan Association of Canada (IPLAC) feels it necessary to respond to the insulting and inaccurate April 2020 Canadian Centre for Policy Alternatives (CCPA) report “Swimming with the sharks – Poverty, pandemics and payday lenders,” authored by Ricardo Tranjan.
In April, 2020, the Canadian Centre for Policy Alternatives added its voice to the pandemic financial crisis, trying its best to vilify the payday loan industry. Its report follows a standard pattern, starting by assuming those using these services are financially uneducated and ignorant. Then the report builds fear, stating that lenders are targeting the vulnerable, and by taking small $15 charges and converting them to outrageous annualized rates.While the report continued to inaccurately confound short term fees with long term interest, what surprised most was the insulting descriptions of the members of IPLAC – local businesses supporting their communities – and their generally satisfied customers. IPLAC’s members provide excellent customer service and are fully transparent and open regarding the regulated fees associated with their products. Our customers are hardworking and without access to standard lending channels. They are most often appreciative and happy for the ability to visit the store, on average, three to four times a year to borrow a few hundred dollars for a week or two.Worse, the report proposes reducing advertising, limiting outlets and reducing fees, which would put IPLAC members out of business, preventing our customers from accessing a legal, government regulated channel to meet their short-term needs. But the alternative, the banks providing more and better products for low-income customers, is fantastical. The banks are structured especially to avoid servicing our customers. It would seem that the report suggests that our customers be forced either to borrow from unregulated, often criminal sources or to simply endure, losing their jobs and their homes.Payday lenders are often the lenders of last resort for a small, short-term, unsecured loan. Our clients understand this and understand the costs associated with making this service available. And they are glad that, when they need help, we are there, early in the morning and late into the night.IPLAC asks Canadian media to provide an accurate, balanced view of our industry and show the benefits we provide to our clients. More, we ask that they pay the respect due to those who turn to IPLAC members when rejected by banks and other financial institutions. These are intelligent individuals who work hard and do not deserve the insulting coverage they have received.

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