Answering your questions about the Need Milk Money campaign.
Why is Cascho running this campaign?
Why is Cashco Running this Campaign? At Cashco we are on the front-lines dealing with the underbanked and underserved daily. We have heard their stories about the lengths they have gone after being denied short-term credit and hope that by sharing our clients stories with future elected officials, they will support legislation around short-term credit that can better reflect the needs of our clients.
How can local politicians help? During these tough economic times, we are asking local politicians to pledge their support for better credit options for Albertans. Amended policies will help ensure that working Albertans won’t have to make the difficult choices of pawning their belongings or going to the black market to cover unexpected expenses. This is the reality of many Albertans who have been in a situation where they needed a hand up, not a handout.
What are the legislations that the GOA put into place that affect companies like Cashco Financial? In 2016, the Government of Alberta undertook a significant reform of the rules that govern payday lenders. The legislative and regulatory changes introduced in An Act to End Predatory Lending have reduced the cost of a payday loan and have spurred the creation of payday loan alternatives at mainstream financial institutions. Cashco, for example, partnered with ATB to provide products and services to clients they were unable to serve.
The legislation, however, have not made it easier for struggling people to access the funds they need in order to make ends meet between paycheques. The same rules that were created to help people, are the same ones preventing them from accessing funds for their families.
Is Cashco partisan?? No. Our company is non-partisan. We understand that policies were put in place with Albertan’s best interest at heart. However, there are untold stories about some of Alberta’s underbanked and underserved who have been inadvertently affected by the legislation. We hope that these stories will prompt future elected officials to find real solutions to help our clients, solutions that will give Albertans, a hand up, not a hand out. and
How many Albertans have to make difficult choices so they can make ends meet between paycheques? Many Albertans struggle to make ends meet. According to a 2017 Ipsos survey, more than half of Canadians are living within $200 per month of not being able to pay all their bills or meet their debt obligations. Our campaign will help us determine qualitative and quantitative data about the difficult choices our customers have to make in order to provide for their families.
What is an alternative financial service (AFS)? Several banking and credit alternatives exist beyond the traditional financial system. These alternatives supply credit-constrained individuals with fast, convenient access to cash or assets. These services are provided at a higher cost because of the high risk involved for the lender.
Why would an Albertan choose Cashco/Money Mart/Speedy Cash over government assistance or a mainstream bank? Many of our clients are among Alberta’s working poor and need support quickly to help them make ends meet for their families. Often, mainstream banks won’t help, so they remain underbanked. And many don’t traditionally qualify for government assistance, either.
Alternative financial institutions, like Cashco Financial, help Albertans establish their credit. They provide accessible credit through their products, thereby helping Albertans establish a healthy record so they can then qualify for financial products from other mainstream institutions. They are looking for institutions that can help them bridge the gap between paycheques, when they have nowhere else to turn. Albertans want help, not a handout.
What is accessible credit? Access to credit is a practical necessity in today’s economy. Credit not only allows Albertans to make purchases, but it enables them to meet long-term needs. Many people do not realize the importance of credit until their access becomes limited.
Albertans without access to credit cannot apply for a mortgage, a car loan, or even credit cards. Their inability to establish a good credit rating prevents them from long-term financial stability. Alternative financial institutions, like Cashco Financial, helps Albertans establish their credit. They provide accessible credit through their products, thereby helping Albertans establish a healthy record so they can then qualify for mainstream products from other mainstream institutions.
Doesn’t Cashco Financial prey on low-income families and keep the cycle of debt going with high interest rates? Cashco Financial provides loans to families who are un- or underbanked. According to Acorn Canada, 3% of all Canadians – close to one million – are unbanked, meaning they have no relationship at all with a mainstream financial institution such as a bank. In addition, 15% – or close to five million Canadians – are underbanked. Underbanked Canadians may have a bank account, but their engagement with the mainstream financial sector remains limited.
These people are our neighbours and co-workers. They are families who are living paycheque to paycheque, which means they are high risk groups with higher default rates; this leads to higher interest rates. That said, Cashco Financial has been recognized as an organization that has lived up to their brand promise of providing relief today and hope for tomorrow to underbanked and underserved Canadians. Cashco also makes every effort to reward good financial health and habits, including no monthly fee with direct deposit, no minimum balance, automatic overdraft of up to $500, 25 cents for every debit card transaction (up to $5 per month) and lower NSF fees.
About Cashco Financial
Cashco Financial is Canada’s leader in the alternative financing industry. With 59 locations across Canada, Cashco strives to provide relief today and hope for tomorrow to an estimated 5,000,000 underserved Canadians. Cashco’s Real World Banking platform (Alberta only) seeks to empower underbanked and unbanked clients to make responsible choices; by offering a wide range of lending products across Canada, including: short and longer-term personal loans, cheque cashing, flex loans and banking services (Alberta only), Cashco is committed to innovative ideas that alleviate financial concerns. Cashco’s newest product, Buy Some Time speaks directly to our clients and with over 85% of loans being written with this feature, we see great success with our client journey to financial resolution. More information about the company is available at www.cashcofinancial.com
For More Information
VP of Marketing and Communications – Cashco Financial
1 (780) 424-1080