Government Operations committee  It's a very complex business, much more so than most people think. Because really the eligibility is simple, one has to have a source of income and a bank account, it does make the risk quite high. You've seen in Canada alone, American players who have come here thinking that they can make a good go in the payday loan industry.

Government Operations committee  Exactly.

Government Operations committee  Again, there might only be five or 10 people visiting during normal business times, but when it's busy is after work. That's when people do their postal, probably, and then they would do their loans at the same time. Waiting in lineups is not something that the payday loans....

Government Operations committee  I think it could be feasible but keep in mind now that like many other industries, it's shifting online, so that anyone in Canada can be served online.

Government Operations committee  When it comes to postal banking, I'm wondering if specifically it's postal payday loan banking or just other banking services? I think we need to differentiate between the two services.

Government Operations committee  As I said earlier, the industry is more complex than many realize. If Canada Post is willing to take that risk and handle the default without taking any type of collateral, then that's something to think about.

Government Operations committee  It's about 20%.

Government Operations committee  No, only if the loan is in arrears. Then there's interest that can be charged.

Government Operations committee  On the loan.

Government Operations committee  Period, yes.

Government Operations committee  That may be a hard question for me to answer, because it's not really a topic that would come up. Currently, where the industries do compete is with money transfers. Canada Post is an agent of MoneyGram. The payday lenders that I've worked for were agents for Western Union. There definitely is some overlap.

Government Operations committee  It's a thought. I know the federal government currently has quite a few free resources for taxes, for example, or for GST, or for child tax rebates, so any additional resources would certainly more likely cover the needs that are out there.

Government Operations committee  Again, I guess the thing to keep in mind is the training. Is it practical to train a postal worker to do all of the above and to be a specialist in all those areas?

Government Operations committee  It's regulated by each province. As of August 1 in Alberta, for example, it's $15 on each $100.

Government Operations committee  Thank you, Mr. Chair. I am here just to offer some insight and education regarding the payday loans industry, which Canada Post has put forward as consideration for additional revenue. Just through a Q and A format.... The payday loan customer is your average Canadian who lives paycheque to paycheque.