Following the new budget tabled by the Liberal government, leading payday lenders confirmed today they would not extend loans to the Province of Ontario.
“Even at the 49.99% interest we charge, we just can’t make a business case for lending money to a dead-broke government with nearly $300 billion in debt,” said Tom Johnson, national head of lending for Money Mart. Johnson added he was fearful the Liberal government might try to erase all records of any prospective loan, thereby making collection very difficult.
“Just look at the gas plant emails. These people have a history of going in late at night and deleting things.”
Johnson added that his firm saw more stable opportunities in blue-chip clients like subprime borrowers in the Vancouver housing market, and unemployed drug addicts who owned multiple condominiums in Toronto.
Janice Robertson, president of the Association of Short-Term Lenders, said the industry did not want to sully its reputation by lending Ontario money.
“It’s very important that we only deal with reputable clients”, she said, adding that it’s one thing to engage in de facto loan-sharking with vulnerable people, but quite another to be seen allowing Ontario to borrow. “We must keep our standards.”
According to sources, Finance Minister Charles Sousa was seen outside the Legislature pleading with repo men not to take back all-day kindergarten.
