A ribbon-cutting for a new company in Owen Sound has drawn a large amount of controversy online from people saying city officials are missing the point.
On May 4, Deputy Mayor Brian O'Leary helped cut the ribbon for EasyFinancial's new location in Owen Sound and posted a photo on his Facebook page.
The Bruce Grey Poverty Task Force took that photo and posted it on their own page, drawing several comments from residents claiming the company's presence is a negative for economic development.
EasyFinancial is a public alternative financial company based in Mississauga. The company had $344 million in loans as of 2016, and is listed on the Toronto Stock Exchange.
Back in 2015, CBC Marketplace did an episode on EasyFinancial, where they discussed loans that carried interest rates as high as 49%, even claiming the company is misleading when it comes to the details of the loans, including both loan insurance (which is optional), as well as the terms of the loan, including the differences between an annual loan and a daily/weekly loan, and how the interest accrues over a period of time.
"We've seen people paying 400% interest on a loan, and not able to keep up the payment, not even able to get to the principle. Then they would have to take out other loans to pay that one," said Bruce Grey Poverty Tax Force Planning Network Coordinator Jill Umbach.
Umbach said all Grey County mayors have taken their "Bridges out of Poverty" program.
"This is not a positive in the community if we have more payday loan companies coming in. We already have seven of them in Owen Sound," she said.
She clarified that the Facebook post was not about "shaming and blaming", but instead they want to use this as an opportunity to educate people about the risk associated with these types of loans, and "let people know this is the fastest way into debt".
However, Deputy Mayor O'Leary defended his presence at the ribbon cutting.
"Mayor [Ian Boddy] was unavailable, so I went in place of him. It has nothing to do with what the business does or represents; we're neutral in that way," he said. "It has nothing to do with personal opinion on what the business is. If a new business opens up, and is a legal business, whether that involves marijuana or lending money. They have asked for assistance for a ribbon-cutting, and that's how I looked at it. We have a new business opening in the city".
As of May 9, the picture posted by O'Leary has appeared in at least four Facebook groups, garnering over 100 combined comments, most expressing frustration at the deputy mayor and Owen Sound Council.
A request for comment on this story from EasyFinancial was not answered.