History of payday loans in Canada
Following an international trend, the payday loan industry first emerged in Canada in the mid-1990s in response to an unfulfilled consumer demand for small-sum short-term credit.
Salary advances, while once prevalent, are less available today because of outsourcing of payroll processing and the use of direct deposit. Prior to the emergence of the payday loan industry, consumers had to turn to their friends and family to borrow small sums, or, if this personal network was unavailable or inappropriate, to alternative lenders with onerous lending conditions.
Consumers looking to borrow very small amounts of money for short periods of time have had limited options. These types of small unsecured loans are typically unavailable through banks or other conventional financial services institutions.
Since the mid 90s, the payday loan industry in Canada has grown rapidly to an estimated 1,400 retail outlets across our country.
Nearly two million Canadians a year make use of payday loans.
Payday loan customers enjoy the high quality, confidential service that our members and their staff offer, the convenience of the store locations, and the extended hours of operation.