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Kitchener moves to cut number of payday loan companies within city

Kitchener city council has moved to restrict the number of payday loan businesses within the city limits.
Kitchener city council has moved to restrict the number of payday loan businesses within the city limits. Nick Westoll / File / Global News

Local residents could soon start to see a decrease in the number of payday loan establishments in the city of Kitchener.

On Monday night, city council voted to cap the number of payday loan business at 10 through new business licensing regulations. The changes will also limit the number to two businesses per ward.

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Currently, there are 18 payday loan businesses within the city, and those will be grandfathered under the old rules, meaning they will be allowed to renew their licences.

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The city says it made the move after a survey of Kitchener residents showed overwhelming support for limiting the number of licences.

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In 2016, changes were made to the Municipal Act that allowed communities to limit the number and location of payday loan establishments within their borders.