Public Notice: Cash Advance Establishment Licensing Review

Venture Overview

Due to modifications into the Ontario pay day loans Act, 2008, while the Municipal Act, 2001, City Council directed staff within the crisis and Protective Services department to investigate the potency of a licensing that is municipal for cash advance establishments, after a initial planning and zoning review carried out by the preparing, Infrastructure and Economic developing division to handle the expansion and clustering among these establishments (see reference below). This overview describes the range of this certification review and offers here is how residents, neighborhood companies, and community businesses can add responses to simply help notify policy options.


A quick payday loan is a short-term, little value loan in return for a future payment, typically become paid back because of the borrower’s pay cheque that is next.

The mortgage is unsecured, doesn’t have guarantee or safety on any property, and will not add a margin loan, pawnbroking, credit line, or a charge card. Loan providers (pay day loan establishments) needs to be certified because of the Province of Ontario as they are susceptible to the conditions regarding the payday advances Act, 2008.

Considering that the functional needs of pay day loan establishments are both addressed by and controlled by the Province of Ontario through its very own certification system, the main focus with this municipal-level certification review is to find out whether municipal certification is important of these companies to be able to help possible brand new land-use preparation and zoning requirements. Info on the proposed planning and zoning rules for cash advance establishments are located in the pay day loan Establishment Minor Zoning research.


Possible elements for addition into the licensing that is municipal include:

  • Requiring cash advance loan providers to acquire a municipal business permit to be able to run within the City of Ottawa;
  • Requiring cash advance loan providers to supply proof a legitimate provincial payday advances licence beneath the payday advances Act, 2008;
  • Outlining ways to establish conformity with proposed zoning and preparation laws, or legal non-conforming liberties, both for current and establishments that are new
  • Requiring loan that is payday to comply with applicable City by-laws ( ag e.g. Property Guidelines and Signage);
  • The necessity for payday lenders to deliver consumer that is additional economic information to borrowers whom utilize the solution; and
  • The creation of certification costs.

Included in this certification review, staff are examining industry laws during the level that is provincial well as exactly just how other municipalities in Ontario control these businesses. This licensing review has been coordinated with all the Payday Loan Establishment Minor Zoning that is ongoing research.

Providing Input and Responses

The City of Ottawa (crisis and Protective Services department) wish to get any responses, issues, or concerns about this certification review for pay day loan establishments. Please ahead your commentary via mail, telephone, or e-mail to your staff contact identified below by 5 PM on 31, 2019 july. Remarks gotten is going to 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 when you look at the Fall of 2019.

Please be aware that providing a remark is voluntary. Any information supplied will simply be utilized with the objective it had been gathered and will also 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 Cash Advance Businesses


Washington, D.C., March 28, 2011 – The Securities and Exchange Commission today announced it has acquired a court order freezing the assets of two payday that is online companies 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 were told their cash could be held in separate bank records and used to invest in payday advances and other components of the businesses’ operations. But, Clark rather commingled investor funds into an individual pool and used them to produce unauthorized investments, pay fictitious earnings to previous investors, and fund his or her own lifestyle that is lavish.

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

The SEC alleges that as well as purchasing multiple costly vehicles and snowmobiles, Clark took investor funds to buy a house movie movie theater, bronze statues along with other art for himself.

Based on 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 earlier investors, Clark additionally recruited investors by attending trade events in different states, attending cash advance seminars, and having to pay salespeople to find prospective investors to fulfill with Clark. He paid one salesperson significantly more than a half-million dollars more than 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 as well as the effect businesses raised funds from investors when it comes to reported purposes of funding payday advances, buying listings of leads for cash advance clients, and having to pay operating that is impact’s. Effect would not circulate a placement that is private or just about any other document disclosing the type associated with investment or even the dangers included to investors. The SEC’s grievance charges influence and Clark with fraudulently attempting to sell unregistered securities.

In accordance with the SEC’s grievance, Clark regularly changed investor account statements supplied to him by Impact’s accounting division to produce artificially high annual prices of return.

The changed account statements with purported earnings had been then delivered to investors. Account statements to clients revealed annualized returns varying from 30 % to a lot more than 200 %.

The court has appointed a receiver to preserve and marshal assets for the benefit of investors in addition to the asset freeze approved late Friday. The SEC’s grievance seeks an initial and permanent injunction since well as disgorgement, prejudgment interest and economic charges from influence and Clark.

This matter had been examined by Jennifer Moore, Justin Sutherland and Marie Elliott regarding the SEC’s Salt Lake Regional workplace, and also the litigation shall be led by Tom Melton. The SEC appreciates the help of the Utah Division of Securities in this matter.

To learn more about that enforcement action, contact:

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