Regulating Payday Lenders in Canada: Drawing on American Lessons

The recent Senate inquiry into credit and hardship underscored the prevalence of predatory conduct in the payday lending industry. The rise of digitalisation has increased consumer access to high-cost payday loans and the ensuing risk of debt spirals. The article examines the marketing strategies of online payday lenders, revealing that the effect of mandatory warnings on the risk of harm are often diminished through website layouts. At the same time, lenders commonly offer fast, convenient cash in tandem with blogs that provide advice on managing finances and living well on a budget, obfuscating the distinction between advertising and altruistism. The findings highlight the need for regulatory enforcement of laws aimed at safeguarding vulnerable financial consumers. Emerging challenges from the increasing digitalisation of payday lending and social media marketing raise the need for reforms to address gaps in the regulatory framework.

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Payday lenders and economically distressed communities: A spatial analysis of financial predation

The Social Science Journal ◽

10.1016/j.soscij.2009.02.008 ◽

2009 ◽

Vol 46 (3) ◽

pp. 521-538 ◽

Cited By ~ 44

Author(s):

Alice Gallmeyer ◽

Wade T. Roberts

Keyword(s):

Spatial Analysis ◽

Payday Lenders

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Financial inclusion, financial stress and debt

Poverty and Social Exclusion in the UK: Vol. 2 ◽

10.1332/policypress/9781447334224.003.0012 ◽

2017 ◽

Author(s):

Glen Bramley ◽

Kirsten Besemer

Keyword(s):

Social Capital ◽

Financial Services ◽

Consumer Credit ◽

Financial Stress ◽

Financial Inclusion ◽

Local Taxes ◽

Bank Accounts ◽

Payday Lenders

Exclusion from financial services in the form of bank accounts has fallen and appears less significant than informal borrowing and problem debt, which have increased dramatically and are strongly associated with poverty. The most common arrears problems are with housing, local taxes and utility bills, not consumer credit. About a fifth of households are not poor but exhibit similar signs of financial stress. Family remains more important than ‘payday lenders’ as a source of informal lendng,underlining the importance of social capital

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