Buffer zones between Ottawa's payday lenders on the table

Recommendations by city staff are calling for limits on wherepayday lenders can set up shop in Ottawa.

In a report to the planning committee and city council, staff favour a minimum separation distance of one kilometrebetween payday loan establishments, which can charge extremely high interest rates for cash advances.

Council approved a motion from Mayor Jim Watsonin April 2018 asking staff to come up with a new set of rulesto prevent too many payday lenders from setting up in poorer neighbourhoods.

Many outlets are clustered along Montreal Road in Vanier, Bank Street in Centretown and St. Joseph Boulevard in Orlans.

Watson said having a glut of businesses such as these isn't good for the residents or economy ofa neighbourhood.

Social organizations sayclusters of these landers make it easier for people to take out high-interest loans from several places, driving them deeper into debt.

"All of the legislation that [the city] is putting in placeis what we can do within the city's powers,"saidRideau-Vanier Coun. Mathieu Fleury, who said he was happy with the recommendations.

New 'buffer zone' rules could be coming for payday lenders

5 years ago

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Nathalie Carrier, executive director of the Vanier BIA, says she'd like to see fewer payday lenders in the neighbourhood, making way for other small businesses that would contribute more to the community.

Existing stores grandfathered in

If the changes pass unchanged, it would meanexisting payday loan outlets outside the newzoning regulations would be allowed to stay.

Once a storemoves out and is replaced by another businesses, the new zoning rules would apply, preventing another payday loan businessfrom setting up there.

The hope is that over time they wouldspread outand there would be fewer of them.

• City moves to curb spread of payday loan outlets
• How a $1,400 payday loan ballooned to more than $10K

The recommendations also call for 500 metres between payday loan centresand casinos, and300 metres between payday lenders and schools.

While Fleurythinksthe recommendations are moving in the right direction, he believescollectivelygovernments could do better.

"We could do better to not fail those who need access to short term loans," he said.

"We could force the big banks to to have a lending program for the vulnerable residents and they don't have that, they're not interested in that market.That's really a federal government component."

The recommendations will go before planning committee Sept. 12,and are set to go tocity council Sept. 25.