paycheck (assignment of wages)
The provincial licensing scheme regulates the operation of establishments including their relationship with borrowers and creates a complaint process.
The provincial legislation does not prescribe how many establishments may operate in the province or in any given municipality or where the establishments may operate within a municipality.
The Ontario legislature amended the Municipal Act, 2001 on May 1, 2018 to give municipalities the power to:
-
Define the area where PLE’s may operate within the municipality and
-
Limit the number of PLE’s that may operate within a defined area, subject only that a municipality cannot prohibit the operation of all PLE’s in the municipality.
Furthermore, municipalities continue to be able to require PLE’s t o obtain business licences under their licensing regimes.
How other municipalities regulate Payday Loan Establishments
The Cities of Kingston and Hamilton restrict PLE’s to one per ward while grandfathering existing establishments. They also restrict the transfer of business licences for PLE’s.
It appears that the rationale in the above municipalities for restricting the number of PLE’s per ward was to reduce their number in areas considered to be populated by low income persons. It is not clear how that restriction reduces the accessibility of low- income persons to PLE’s.
The City of Kitchener restricts PLE’s to two per ward to a maximum of ten citywide. It also requires a minimum of 150 metres between PLE’s and 150 metres from gaming establishments a nd from any addiction or gambling counselling service. Kitchener’s rationale for restricting PLE’s, taken from its Administration report to Council, was “Not to prohibit these businesses but rather to find a balance between protecting consumers and allowin g these businesses to operate for those who need them.” No rationale is apparent for the distance restrictions.
The City of Brantford allows a maximum of ten PLE’s. It requires minimum distancing of 150 metres from group correctional homes, mini-group homes, group homes, group residences, crisis residences, group correctional residences, medical clinics, schools and gaming establishments (unless the PLE was within the minimum distance at the time the by-law was passed). The rationale for the distance restriction other than to keep them away from “sensitive” areas.