Assessing the impact of COVID on consumers of high interest loans

Author

Association of Community Organizations for Reform Now Canada

Organization

Association of Community Organizations for Reform Now (ACORN) Canada

Published

2023

Summary

This study, produced by ACORN Canada, examined the financial impact of the pandemic on those with low- and moderate-incomes and how, in turn, this led to the usage of high-cost loans. For this study, high-cost loans are defined as loans that fall outside the traditional lenders like banks and typically have an interest rate of more than 30 percent.

The survey, conducted by ACORN Canada between November 2021 and January 2022, looked into the growing trend of payday lenders offering larger, long-term installment loans that can legally include an annual interest rate of 60 percent, plus insurance and fees. The online survey, which was available in both official languages, was emailed to ACORN members nationally.

Testimonials of those who were willing to share their real world experiences are also included in the report.

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OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.

Contact information

Source: Consumer Policy Research Database