Extreme Weather Drives Demand for Payday Loans: Bank of Canada

Sudden increases in payday lending go hand-in-hand with extreme weather, Bank of Canada (BoC) researchers have discovered.  A newly released BoC report found that days of extreme heat or cold lead to surges in payday loan applications, noting that both high heat and frigid temperatures lead to bigger bills and increased credit card use. “One of the reasons households resort to payday loans is to pay bills,” the report noted, adding that temperature-induced health issues or missed work days due to weather are also factors. “In general, extreme temperatures lead to higher energy consumption demand and expose households to higher health risks,” said the report, which was first obtained by Blacklock’s Reporter. ...