If they come to East Palo Alto, payday lenders will be heavily restricted
Though East Palo Alto doesn't have payday lenders, the city council has approved an ordinance that would make it difficult for any to come into the community and do business there.
The ordinance, approved Tuesday night on a 4-1 vote, says payday lenders can operate only from 7 a.m. to 7 p.m. and requires them to submit lighting and security plans subject to the city's approval. In addition, it says they can operate only in commercial districts, at least 500 feet away from any residences and 1,000 feet from schools, churches, bars and liquor stores.
"We're not preventing anyone from getting financial assistance at a smaller level, we're just trying to protect people from certain predatory practices that use the vulnerability of their circumstances," Council Member Ruben Abrica said. "We're just trying to circumscribe certain conditions so we discourage businesses like this. I think there's nothing wrong with doing that."
Council Member Peter Evans, who voted against the ordinance, said his council colleagues are out of touch with financially desperate constituents.
"I think the people who proposed these sorts of amendments should create another alternative for these people," Evans said. "You've never been where you have to pay $20 to get your baby's medicine, to get your car fixed, to get a tire fixed, to turn your lights on."
Payday loans are short-term, high-interest transactions that allow a borrower to write a post-dated check to a lending business in exchange for immediate cash. The check is deposited on the borrower's next payday. The customer's ability to pay back the loan is not a factor in the deal.
Under California law, the maximum amount a consumer can borrow from a payday lender is $300 and the top fee a lender can charge is 15 percent of the loan. An Assembly bill working its way through the Legislature would increase the allowable loan amount to $500.
The problem with the loans is that two-thirds of borrowers end up getting cash from several payday operations, City Attorney Valerie Armento says in a memo, citing state Department of Corporations findings. Many borrowers get caught in a "repetitive cycle of borrowing that is difficult if not impossible to end," Armento's memo says.
Consumer Help On Pay Day Loans - News
The check is deposited on the borrower's next payday. The customer's ability to pay back the loan is not a factor in the deal. Under California law, the maximum amount a consumer can borrow from a payday lender is $300 and the top fee a lender can
Los Angeles, CA -- (SBWIRE) -- 11/30/2011 -- Payday loans is a popular method for meeting the financial needs of consumers today. Those living in Idaho can now look through the consumer resource section that is tailored towards the state of Idaho.
Consumers encountering financial hardships are likely to turn to the companies offering cash advance payday loans. Thus, Cash Advances US announces new details concerning its lending service in order to help people get educated about cash advance loans
Los Angeles, CA -- (SBWIRE) -- 11/29/2011 -- To help consumers distinguish between scam artists and legitimate payday loan companies, CashAdvance.com has released a consumer protection page that will feature information about the cash advance industry
Almost everyone pays off their loans before reaching day 70. That shows we loan to people who can afford them,” said Wendy Gibson, a regional manager for Check City and a spokeswoman for the Utah Consumer Loan Association of payday lenders.
CashAdvance.com Launches a Payday Loan Resource Page for ...
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