And from our neighbors to the north…
March 20, 2009 | industry | Comments (0)Despite what some in the media and industry critics assume, it turns out the recession is not creating a boom in payday lending. This piece focuses on Canada, but rings true in the US as well.
“I think there has been some speculation that the payday loan industry would experience a big boom because of the recession,” said Michael Thompson, spokesman for the Cash Store. “That certainly hasn’t been the case for our company.”
One of the reasons is that a person has to have a job or a form of income to secure a payday loan. The short-term loans usually amount to a couple of hundred dollars.
“When people lose their jobs, they are losing their security against their loan, so I think that is having some impact,” Mr. Thompson said.
Stan Keyes, president of the Canadian Payday Loan Association, said that many lenders belonging to the association say the number of transactions has stabilized and they are not bringing in new business.
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