Windsor Coun. Rino Bortolin wants the city to take action on payday loan lenders

Windsor Coun. Rino Bortolin says he wants council to take steps to limit payday loan companies in the city.

Bortolin, who represents Ward 3, described the business practices of such companies as "predatory," saying these companies target lower-income residents, who are typically unable to easily acquire loans from banks or credit unions.

"This has been something that's been on my radar for a few years," he said, adding council has yet to address the issue because "it's just something that hasn't come up."

Payday loan companies, like Money Mart or Cash 4 You, typically operate by offering easy loans attached to high interest rates.

"The business model is basically do what a bank does, but at probably 10, 15, 20 times the level of a fee," said Bortolin.

The previous provincial Liberal government took steps to lower the cost of borrowing from payday lenders, while also providing municipalities with more control over where such businesses can set up shop.

Listen to Rino Bortolin's conversation about payday loan lenders with Windsor Morning's Tony Doucette:

Cities like Ottawa, Hamilton and Kitchener have looked at the issue and either proposed steps or made changes to spread of payday loan lenders, but Windsor has yet to discuss the issue.

Bortolin pointed to Kitchener, where city council enacted legislation ensuring only two payday-loan lenders can operate in a given ward, as an example of possible regulation.

According to Kitchener Ward 10 Coun. Sarah Marsh, the city also tackled payday loan lenders by capping the number of such businesses allowed to operate at 10.

Marsh said Kitchener currently has 18 payday loan lenders in operation.

"They are all grandfathered in," she said. "So until they were too close or don't comply with the new regulations that we have for them, they will remain."

Marsh added that limiting payday loan lenders is a "long-term game."

Listen to Sarah Marsh discuss payday loan lenders with Windsor Morning's Tony Doucette:

Bortolin said Windsor could also limit payday loan lenders, just at the city limited adult entertainment establishments.

"Through attrition, we grandfather the ones that are here, but as they close, we don't allow more licences to open up," he said. "So there is a limited number of licenses in the community."

Still, Bortolin said administration will realistically need to determine Windsor's options.

Bortolin said he would get the ball rolling by asking a council question, which allows councillors to "bring something sort of out of nowhere on the radar."

"So I'll ask administration to come back with a report with options for licensing and zoning restrictions, and we'll see what other communities are doing," he said. "We'll see what we are able to do."

Bortolin added it could take anywhere between six and 12 months to finalize regulations, adding that a council question would nonetheless "[get] the ball rolling."

For his part, Ward 2 Coun. Fabio Costante agreed that something should be done about payday loan lenders. However, he said he wasn't convinced zoning would address the issue.

"I think it's the high-interest rates that really cause the issue," he said.