Public Notice: Pay Day Loan Establishment Licensing Review

Public Notice: Pay Day Loan Establishment Licensing Review

Venture Overview

Due to modifications to your Ontario payday advances Act, 2008, therefore the Municipal Act, 2001, City Council directed staff within the crisis and Protective Services department to evaluate the potency of a licensing that is municipal for pay day loan establishments, after an initial planning and zoning review carried out by the preparing, Infrastructure and Economic developing division to handle the expansion and clustering of those establishments (see guide below). This overview describes the scope regarding the certification review and offers here is how residents, regional companies, and community companies can add remarks to greatly help notify policy choices.


An online payday loan is a short-term, little value loan in return for the next payment, typically become repaid because of the borrower’s next pay cheque.

The mortgage is unsecured, does not have any guarantee or safety on any home, and will not add a margin loan, pawnbroking, personal credit line, or a charge card. Loan providers (cash advance establishments) should be certified by the Province of Ontario and generally are susceptible to the conditions of this pay day loans Act, 2008.

Considering that the operational demands of pay day loan establishments are both addressed by and controlled by the Province of Ontario through a unique certification system, the main focus of the municipal-level certification review is to ascertain whether municipal certification is essential of these organizations so that you can support possible brand new land-use preparation and zoning demands. Info on the proposed planning and zoning rules for pay day loan establishments are located in the pay day loan Establishment Minor Zoning research.


Potential elements for addition within the licensing that is municipal include:

  • Requiring loan that is payday to get a municipal company license in order to run into the City of Ottawa;
  • Requiring loan that is payday to supply proof a legitimate provincial payday advances licence underneath the payday advances Act, 2008;
  • Outlining ways to establish conformity with proposed zoning and preparation laws, or appropriate non-conforming liberties, both for current and establishments that are new
  • Requiring pay day loan loan providers to comply with applicable City by-laws ( e.g. Property Guidelines and Signage);
  • The necessity for payday loan providers to produce consumer that is additional monetary information to borrowers whom make use of the solution; and
  • The creation of certification costs.

As an element of this certification review, staff are examining industry regulations during the provincial degree since well as just how other municipalities in Ontario control these businesses. This certification review will be coordinated using the Payday Loan Establishment Minor Zoning that is ongoing research.

Providing Input and Commentary

The town of Ottawa (crisis and Protective Services department) want to get any remarks, issues, or concerns about this certification review for pay day loan establishments. Please ahead your responses via mail, phone, or email towards the staff contact identified below by 5 PM on 31, 2019 july. Responses received may be considered by staff into the planning of an employee report and tips about a prospective licensing regime that is municipal. This certification review and recommendations that are staff’s be viewed at Community and defensive Services Committee into the Fall of 2019.

Please note that supplying a remark is voluntary. Any information supplied will simply be utilized with the aim it absolutely was gathered and you will be held pursuant that is confidential the Municipal Freedom of data and Protection of Privacy Act.

Dated during the City of Ottawa this 2nd of July 2019 day

To learn more, contact:

SEC Halts $47 Million Investment Fraud at Utah-Based Pay Day Loan Businesses


Washington, D.C., March 28, 2011 – The Securities and Exchange Commission today announced it has acquired a court purchase freezing the assets of two pay day loan organizations and their owner faced with perpetrating a $47 million providing fraudulence and Ponzi scheme.

The SEC alleges that John Scott Clark of Hyde Park, Utah, promised investors astronomical yearly comes back of 80 per cent on the opportunities in their businesses – Impact money LLC and Impact Payment Systems LLC. Investors had been told their cash is kept in separate bank accounts and utilized to invest in loans that are payday other facets of the businesses’ operations. But, Clark rather commingled investor funds into just one pool and used them in order to make unauthorized investments, pay fictitious earnings to previous investors, and fund their own lifestyle that is lavish

Extra Materials

“Investors had been guaranteed returns that are extraordinary Clark ended up being really diverting their funds to produce such extraordinary personal acquisitions as a completely restored classic 1963 Corvette Stingray, ” said Ken Israel, Director for the SEC’s Salt Lake Regional workplace. “Clark recruited brand new investors through recommendations from earlier in the day investors whom thought the Ponzi re payments they received had been real comes back on the investments and sought to generally share the profitable possibility with household and company associates. ”

The SEC alleges that as well as purchasing multiple high priced automobiles and snowmobiles, Clark took investor funds to shop for a property theater, bronze statues as well as other art for himself.

In accordance with the SEC’s problem filed in U.S. District Court for the District of Utah, Clark lured at the very least 120 investors into their scheme. Besides word-of-mouth referrals from previous investors, Clark also recruited investors by attending trade events in several states, attending loan that is payday, and having to pay salespeople to find possible investors to satisfy with Clark. He paid one salesperson significantly more than a half-million dollars over a multi-year duration to find possible investors and attend cash advance conferences and trade events.

The SEC alleges that from at the very least March 2006 to September 2010, Clark while the effect businesses raised funds from investors for the reported purposes of funding payday advances, buying listings of leads for pay day loan clients, and having to pay Impact’s running costs. Effect failed to circulate a personal positioning memorandum or other document disclosing the character regarding the investment or perhaps the dangers included to investors. The SEC’s complaint charges influence and Clark with fraudulently attempting to sell securities that are unregistered.

In accordance with the SEC’s issue, Clark regularly changed investor account statements offered to him by Impact’s accounting division to generate artificially high yearly rates of return.

The account that is altered with purported earnings had been then provided for investors. Account statements to customers revealed annualized returns varying from 30 % to significantly more than 200 per cent.

Besides the asset freeze authorized late Friday, the court has appointed a receiver to protect and marshal assets for the main benefit of investors. The SEC’s problem seeks an initial and injunction that is permanent well as disgorgement, prejudgment interest and economic charges from influence and Clark.

This matter ended up being examined by Jennifer Moore, Justin Sutherland and Marie Elliott of this SEC’s Salt Lake Regional workplace, together with litigation shall be led by Tom Melton. The SEC appreciates the assistance of the Utah Division of Securities in this matter.

To learn more concerning this enforcement action, contact:

Kenneth D. Israel, Regional Director Karen Martinez, Assistant Director SEC’s Salt Lake Regional Office (801) 524-5796