The possibility of having payday loan companies set up shop in Penhold created passionate dialogue amongst council members at a recent meeting. The item was up for discussion at council's regular meeting on Feb. 8 after members requested administration review payday loan businesses.
During the discussion several councillors voiced their opinions and raised concerns about the businesses.
Coun. Kathy Sitter said that she does not like the idea of these types of businesses coming to Penhold, especially with the current economic climate. However, she was uncertain what could be done about it.
“It's feeding off of people that are already at the poverty level or below. In this day and age right now I don't think the Town of Penhold needs one,” said Sitter. “I don't know if we can stop them. I don't know if there's a bylaw that we can put in place that does not allow them in town.
“It's not something I want to see in our town,” she added.
Coun. Julia King said payday loan companies can create problems for people, while Coun. Cory Kingsfield noted a “snowball” effect can often occur with them.
“It just snowballs and then it gets worse, and worse, and worse,” said Kingsfield, noting that he was unsure whether or not council could prevent this type of business from coming to town.
But Coun. Yargeau said it was not council's decision to make.
“We shouldn't be in the business of deciding whether or not this one particular business can come to town,” said Yargeau. “As long as they're operating within the law, that's not for us to say that they can't be here to do that.”
Mayor Dennis Cooper noted the cities of Calgary and Edmonton have both put in resolutions to the AUMA (Alberta Urban Municipalities Association) to have the provincial municipal affairs ministry look into the matter, including possible regulations with payday loan businesses.
“I think this information is great information for us but let's see how everything takes its course before we have a motion that certain businesses are not allowed to come into town,” said Cooper.
Administration provided an information package and several recommendations upon completing their review of payday loan businesses. Those recommendations included asking the province to grant ATB Financial greater flexibility to provide service to higher-risk clients, and encouraging organizations that work with providing service to the working poor to develop tools that can assist them towards better financial health.
Council voted to have the Alberta Urban Municipalities Association look into the recommendations brought forward.
Coun. Kathy Sitter
"It's feeding off of people that are already at the poverty level or below. In this day and age right now I don't think the Town of Penhold needs one."
