Canada Post and TD Bank have ended a program meant to offer small loans to people living rurally with little access to bank services.
The two organizations launched the MyMoney program nationwide in October, but paused it indefinitely a month later after identifying “signs of irregular activities” by people who “tried to take advantage of a new product.”
Now, both parties are ending the service.
“Following a comprehensive review, we have now jointly decided to pause the MyMoney Loan application indefinitely,” a Canada Post spokesperson wrote in an email.
“While this means the MyMoney Loan application will no longer be offered, we are committed to exploring new ways to provide financial services to Canadians.”
Canada Post added those with existing loans will not be impacted and will be able to access their information as normal.
This comes as low-income Canadians are finding it harder to secure the short-term loans they need to get by.
A report Wednesday from the Association of Community Organizations for Reform Now found there are a “very limited number of low-cost or fair credit options for low- and moderate-income people” and there is limited access to the ones that do exist.
The report specifically mentioned the MyMoney program as one of the only two options for these loans, along with Accord D from Desjardins. The report recommends continued use of the Canada Post plan with federal support.