NDP using payday issue to score political points in Ontario

Cheri DiNovo has received some attention in Toronto this week for her stance on Ontario's newly tabled payday loan legislation. She is advocating for a rate cap of 35% per annum (article), following the model that is used in Quebec. It is no secret that companies cannot deliver payday loans for 35% per annum. If they could then there would be no need for Bill C-26. The NDP knows this, or at least they should. Ernst & Young released a study in 2004 documenting what it costs to issue a payday loan in Canada. Deloitte did the same thing with their Manitoba study released this past fall. If Ms. DiNovo needs further evidence then she can take a drive down the 401 to Montreal and she will find that there are no payday loan outlets in that city or anywhere else in Quebec.

If Ms. DiNovo and the NDP want to ban payday loans then they should come out and say it so that Canadians, and specifically payday loan customers, can consider this position on its merits. Unless the NDP really hasn't done the math, their stance on payday loans in Ontario is designed to grab headlines and nothing more. Payday loan consumers deserve better.