Thousands of Albertans Still #NeedMilkMoney

Access to credit remains a pressing concern

EDMONTON, March 28, 2019 /CNW/ - Thousands of Albertans are going without according to a recent survey from Cashco Financial. As a result of more difficult small loan lending rules put in place in 2016, Alberta families have had to make tough choices in order to make ends meets between paycheques.

"We've had thousands of families come forward to tell us their story about what it's meant for them when being denied small loans from their local financial institutions," says Tim Latimer, CEO, Cashco Financial. "From what they've told us, the problem is worse than we thought."

More than 3,000 respondents answered the call to respond to the Cashco survey and the company has now launched a campaign, #needmilkmoney, to get their stories told to political candidates ahead of the April 16 provincial elections.

Cashco's recent survey results demonstrate that the government rules that were set out to protect Albertans are actually putting them under undue financial stress.

"I used up all my savings and RRSPs because I couldn't get access to credit," said one respondent from Strathmore, AB. According to a 2017 Ipsos survey on behalf of MNP, more than half of Canadians are living within $200 per month of not being able to pay their bills or meet their debt obligations. As such, underbanked families often experience penalties in order to pay off unforeseen expenses.

"We want politicians to know that there is a portion of our population that is not being served by mainstream financial institutions," says Courtney Johnston-Naumann, Vice President of Marketing & Communications, Cashco Financial. "The stories of families in our communities who struggle between paycheques is real. They are hardworking people who sometimes need a hand up, not a hand out, to be able to pay regular or unexpected bills in moments they need it the most. They should be able to access the credit they need without the many constraints currently in place that make it more difficult to pay back."

In 2016, the Alberta government introduced An Act to End Predatory Lending limiting fair and equitable access to credit. Without that access, underbanked Albertans are limited in how they can establish a positive credit history affecting all areas of their life. One in eight Canadians, approximately 5 million people, are underbanked, meaning they may have a bank account but are unable to access the services their banks offer because of punitive and expensive policies.

"The language and limitations imposed in the Act were a surprise to us," Latimer says. "It indicated that there was very little understanding of the industry and difficulties facing thousands of Albertans living paycheque to paycheque. We hope to bring this reality to the forefront and help shape Alberta's future."

For more information about the #needmilkmoney campaign, please visit needmilkmoney.ca.

About Cashco Financial
Cashco Financial (www.cashcofinancial.com) 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 clients with over 85% of loans being written with this feature, seeing great success with the client journey to financial resolution.

SOURCE Cashco Financial