Lake Country Mayor James Baker
Image Credit: FACEBOOK/District of Lake Country
April 30, 2020 - 4:43 PM
The mayor of Lake Country has written to the federal government calling out "the wrong and unjust" actions of Canadian banks profiting from mortgage deferrals during the COVID-19 pandemic.
In an open letter to Liberal Finance Minister Bill Morneau, Lake Country Mayor James Baker asks for the federal government to put regulations into place to stop banks and mortgage lenders from gaining financially on deferred mortgages.
"On behalf of council we want to convey our citizens' significant concern, frustration and frankly disgust at the way mortgage providers, particularly the big banks are charging interest and delayed payment fees for deferred mortgage payments," Baker says in the letter.
"It’s unjust and wrongful, that lending institutions are taking advantage of the unavoidable situation customers find themselves facing and profiting from an emergency. Programs offered force customers to pay exorbitant deferral rates and fees, knowing the customer has no other option to exercise."
Baker calls for the Liberals to put regulations in place to eliminate the financial gains banks and other financial organizations are making as a result of COVID-19.
"Across Canada individuals and businesses are being called out and punished for profiteering in this crisis yet our wealthiest institutions stand to profit even more, charging interest on interest," Baker's letter reads.
Baker says citizens are deeply troubled and trying to provide for their families and that council appreciates the federal government's request for financial institutions to provide mortgage deferral options during the pandemic but that regulations are needed to "eliminate the financial gains" that banks, "our richest, most profitable and protected companies" are making during the pandemic.
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