Vancouver City Council

3. Regulating Payday Lending Businesses
MOVED BY: Councillor Green
SECONDED BY: Councillor Louie
WHEREAS there has been a proliferation of unregulated payday lending businesses in the City of Vancouver;
AND WHEREAS the Criminal Code of Canada defines the criminal rate as anything exceeding 60 percent in annual effective interest;
AND WHEREAS research shows that payday lenders typically charge between 300 and 900 percent interest;
AND WHEREAS a recent claim brought by a Vancouver citizen who was charged an interest rate of 1,242 percent by a payday lender has been forwarded to the Vancouver Police Department for investigation by Crown Counsel;
AND WHEREAS there are presently no federal or provincial regulations that govern payday lenders in much of the country, including in the Province of British Columbia;
AND WHEREAS Vancouver residents want and need access to small-sum, short-serviced loans at a fair price;
THEREFORE BE IT RESOLVED that staff report back to Council as soon as possible with policy options to manage payday lending businesses. Issues to be considered as part of the report back include, but are not limited to:
1) the number and location of existing payday lending businesses in the City of Vancouver;
2) recommendations for Council policy to guide future land use decisions regarding pay day lending businesses;
3) recommendations for Council policy to regulate payday lending businesses;
4) recommendations on steps the City can take to encourage existing lending institutions to provide low income people with better access to lending services.
BE IT FURTHER RESOLVED that the City of Vancouver urge the provincial and federal governments to develop and enforce regulations for this industry and that such regulations consider the regulatory framework put forward by the national nonprofit organization, Acorn Canada.