Only weeks after launch, TD hits pause on loan program partnering with Canada Post

Only weeks after launch, TD hits pause on loan program partnering with Canada Post
Only weeks after launch, TD hits pause on loan program partnering with Canada Post

اخبارالعرب 24-كندا:الخميس 24 نوفمبر 2022 12:23 مساءً It only launched last month, but TD Bank and Canada Post have already put a new program offering loans for businesses and customers in remote communities on pause, citing unspecified "processing issues."

Known as the MyMoney program, the mail carrier and lender announced just last month that 6,000 Canada Post locations across the country would soon be able to offer individuals small loans of between $1,000 and $30,000.

Targeting remote communities that lack full service bank branches but do have Canada Post locations, the program was an example of what's known as postal banking — a system that countries such as Italy, Brazil, New Zealand, Switzerland and others have, to varying degrees of success, but one that hasn't existed in Canada in more than 50 years.

While customers would apply either in person or online via Canada Post, the loans themselves would be with TD Bank, and come with rates of up to 20 per cent per year — much higher than many other traditional lines of credit, but less than what instalment and payday lenders tend to charge in communities without full-service bank facilities.

At the time, TD said it planned to expand the program to even more banking services, but after barely a month, CBC News has learned that the lender has put the program on temporary hiatus.

"Since the launch, the product was paused both online and in physical locations, after experiencing processing issues," the bank said, without elaborating. "We're still working through this and will update accordingly."

The website where Canadians can apply for the loans has an advisory that the loans are "temporarily unavailable."

Unanswered questions

Duff Conacher, co-founder of civic advocacy group Democracy Watch, supports the concept of postal banking generally, but was underwhelmed when he heard the details of the program.

"It's gouging on the top end," he said in an interview. "A line of credit should be around 10 to 12 per cent right now, unless it's tied to a mortgage and then it should be lower."

"There's no reason to go above that."

CBC News has asked TD Bank for more details on what sort of "processing issues" led to the decision — and what the status of existing applications is — but so far the lender has declined to elaborate.

تم ادراج الخبر والعهده على المصدر، الرجاء الكتابة الينا لاي توضبح - برجاء اخبارنا بريديا عن خروقات لحقوق النشر للغير

التالى Concerns grow that Alberta's Sovereignty Act will drive investment from province when it's needed most

c 1976-2021 Arab News 24 Int'l - Canada: كافة حقوق الموقع والتصميم محفوظة لـ أخبار العرب-كندا
الآراء المنشورة في هذا الموقع، لا تعبر بالضرورة علي آراء الناشرأو محرري الموقع ولكن تعبر عن رأي كاتبيها
Opinion in this site does not reflect the opinion of the Publisher/ or the Editors, but reflects the opinion of its authors.
This website is Educational and Not for Profit to inform & educate the Arab Community in Canada & USA
This Website conforms to all Canadian Laws
Copyrights infringements: The news published here are feeds from different media, if there is any concern,
please contact us: arabnews AT and we will remove, rectify or address the matter.