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A loan program delivered by Canada Post and Toronto-Dominion Bank has been paused weeks after the partner organizations announced plans to expand it across the country.
A spokeswoman for TD Bank confirmed that the MyMoney Loan program has been placed on pause indefinitely because of unspecified issues with processing.
“Since the launch, the product was paused both online and in physical locations, after experiencing processing issues,” Amy Thompson said in an email to BNNBloomberg.ca. “We're still working through this and will update accordingly.”
Canada Post referred questions about the status of the program to TD Bank.
The loan program offered variable or fixed loans ranging from $1,000 to $30,000. Repayments could be spread over one- to seven-year terms.
People did not need collateral security for the unsecured-term loans that were based on credit scores. Eligibility requirements included that people had an annual income of $1,000 or more, had not declared bankruptcy and were Canadian citizens or permanent residents.
Earlier this fall, the Crown corporation and TD announced a national expansion for the program that was first launched in 2021 at locations in Nova Scotia, Manitoba and Ontario.
An October Canada Post news release promoted the program as aimed at expanding financial services access to more Canadians by “combining the reach and trust of Canada Post’s national post office network with personal loans for amounts as low as $1,000 and competitive interest rates.”
The national launch was intended to make the program available in rural, remote and Indigenous communities, the release said, noting that the initial market test “demonstrated the potential of the MyMoney Loan to help meet the needs of many Canadians, including those who are new to credit.”