Friday, May 02, 2008

My name is Joshua and I use a payday lending service

I pay each of my participants $21 a week for their allowance. In cash. I needed to get their money today. But it was 8pm and even though I use Toronto-we-have-the-longest-hours-anywhere-Dominion for my bank, they were closed. So I went to the ATM, withdrew twenty-dollar-bills, and then walked down the street to the Money Mart and had them give me change for a twenty so that I had the loonies I needed.

These cheque cashing services are rightly slagged for exploiting poor people. And they do (our local Money Mart has conveniently placed a Western Union advertising sign right in front of the 'code of conduct' that they're required to have posted on their wall). But I wonder whether NDP legislation to 'crack down' on payday lending services will ultimately prevent me from getting my loonies at 8pm?

When I was in Cyprus a couple years ago, I followed my couchsurfing host around on her daily routine: paying her electric bill at the company's office in cash, waiting at the welfare office to get her cheque in person, looking through the cash that she kept in her apartment. I asked her "wouldn't it be faster to do all this online?" "Yes," she replied, "but then the tax authorities would be able to track my income". People have a lot of reasons for using non-traditional banking services.