Item - 2016.MM17.8

City Council on March 31 and April 1, 2016, adopted the following:

1. City Council direct the Chief Planner and Executive Director, City Planning to submit a report outlining an appropriate approach to regulating new payday lenders, installment lenders, title lenders, cheque-cashing operations and cash-for-gold operations.

2.  City Council request the Province of Ontario to increase the lender licence fee from $750 per main office and $990 per branch office to $2,000 and $3000 respectively, and that the increased revenue be invested into financial literacy and management programs at the community level with the goal to reduce the community need and the local demand for payday loans.

3.  City Council request the Province of Ontario to:

i.  cap the annual rate of interest for all lenders to 35 percent;

ii.  direct lenders to review the borrowing patterns of their clients before approval to identify unsustainable borrowing patterns; and

iii.  direct lenders to translate their lending fees to annualized interest rates to visibly highlight the differences in borrowing costs to their clients.

4.  City Council request the General Manager, Economic Development and Culture to convene and encourage regulated financial institutions such as accredited banks and credit unions to locate in all communities, including low-income neighbourhoods, and to develop suitable services such as micro-credits and other financial options that can fill in the current credit gap in priority communities.

5.  City Council request the Government of Canada in its current review of Canada Post to recommend the addition of financial and banking services at Canada Post, or at a minimum, a task force to determine how to deliver new financial and banking services through our postal service.

6.  City Council direct staff to forward a copy of this Motion and to request favourable consideration of same at the Federation of Canadian Municipalities and the Association of Municipalities Ontario.