The Daily Journal (San Mateo), Michelle Durand, 7/12/14. "Daly City tries once more to regulate payday lending."
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| Can't regulate my meal |
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| Can regulate my location |
The previous effort, though, targeted not just the locations but the actual loan products. Canepa had proposed allowing short-term loans up to $500 with a maximum APR of 18 percent for residents and give users the ability to build credit by paying off loans over a period of up to a year. Canepa also wanted a cap of three loans per person per year and a financial education requirement for borrowers.
State law and court challenges preempts the city from targeting the actual loans which is why this second attempt is focused on the providers.
If the Daly City Council moves ahead, it joins Redwood City in
regulating where the industry can set up shop. That city bans check
cashing businesses downtown and some zoning districts and requires a use
permit in others. Pacifica enacted a two-year moratorium on them which
it has voted to extend. The city of San Mateo has recently begun
exploring the possibility of regulations, too. Read more.
Note photographs: Great white shark (right) from Ztona.org, turning shark (left) from Sharks.org, Sharks Research Institute.
Note photographs: Great white shark (right) from Ztona.org, turning shark (left) from Sharks.org, Sharks Research Institute.
Posted by Kathy Meeh
5 comments:
Interesting article. I stopped by the payday lender at the top of Manor, out of curiosity, (not to cash a check)....he's next to the Rice and Roll restaurant and laundromat, he said he does great business, even though he's in the middle of nowhere.
Cash call Rates:
Loan Product Loan Fee MAX APR Number of Payments Payment Amount
$25,000 $75 35.87 % 120 months $767.44
$10,000 $75 99.75 % 84 months $826.06
$5,075 $75 116.73 % 84 months $486.58
$2,600 $75 139.13 % 47 months $294.46
You can educate the borrowers all you want, there is always a demand for these types of loans. I think there's been one in Linda Mar Shopping Center for a few years. Tougher caps on rates and fees would
protect the desperate and/or foolish from these leeches.
Lost lives to bankers - who prey on those who have so very little. Getting that last bottom dollar from those least able to afford it.
Those don't include the pay-back rate. Not something most unsophisticated, resource-poor, education-poor borrowers understand. These institutions help keep those who can least afford it in permanent debt.
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