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New county ordinance to restrict payday loan providers. Santa Clara County Board of Supervisors passes ordinance to block check-cashing organizations

January 25, 2021

New county ordinance to restrict payday loan providers. Santa Clara County Board of Supervisors passes ordinance to block check-cashing organizations Santa Clara County Board of Supervisors passes ordinance to block check-cashing companies The Board of Supervisors passed an ordinance Tuesday evening, May 1, that blocks payday loan providers and check-cashing organizations from starting brand brand new branches into the unincorporated regions of Santa Clara County. Payday loan providers and check-cashing outlets work as a substitute for conventional banks by providing short-term loans and will charge effective interest levels as high as 460 %, county officials stated. Board of Supervisors President George Shirakawa stated they passed the ordinance because such loan providers are "predatory" and target low-income residents. In accordance with the Center for Responsible Lending, such financing companies are disproportionately positioned in African-American and Latino areas, county officials stated. Supervisor Mike Wasserman stated which he thinks such payday advances only drive borrowers deeper into debt. "The high interest rates charged by payday loan providers entangle borrowers in a vicious period," Wasserman stated. The board made a decision to ensure lending that is payday check-cashing organizations try not to transfer to the unincorporated county areas if San Jose as well as other towns additionally pass comparable ordinances, according to Andrea Flores Shelton, deputy chief of staff for Shirakawa's workplace. The San Jose City Council is scheduled to think about one ordinance that is such 15. What is neighborhood journalism worth for your requirements? Help Palo Alto on the web for less than $5/month. "We did not desire those organizations relocating," Shelton stated, including that the commission is certainly not depriving them of current solutions, just growth that is limiting. Based on the board, there are many than 2,000 lenders that are payday their state, surpassing the amount of Starbucks places.
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