Payday lenders banned from Menlo Park [CA]

[alp227]

Payday and auto title lenders aren't welcome in Menlo Park.

And lest they not get the message, the City Council approved an ordinance Tuesday night to keep them out for good.

The lenders provide quick cash with very high interest rates or offer loans in exchange for the title to a vehicle. The borrowers in most cases have low incomes or poor credit, or both.

In California, the average annual percentage rate for payday loans in 2010 was 414 percent, according to a staff report.

full: http://www.mercurynews.com/peninsula/ci_26375871/payday-lenders-banned-from-mountain-view

[Uncle Joe]

1. Kicked and recommended.

Thanks for the thread, alp.

[RufusTFirefly]

2. Coincidentally, I was just there today

Call me naive, but I don't think many of the city's residents will be affected by this law.

[BrotherIvan]

4. +1

It's a very affluent area. But if the law stands up to challenges, I do hope more cities use it as a template.

[Sherman A1]

6. agreed

I recall years ago, the community where I live tried to ban a Hooters. It was a lengthly "discussion" and eventually as I recall Hooters won in court although did not place a unit where they had planned. Years later they returned and put one much nearer a school (which was one of the points being argued by the local activist at the time). It is still there today doing business as usual.

[BrotherIvan]

3. This is a good idea and I hope more towns adopt it

I will note that having lived in Menlo Park, I have no idea where they would have a check cashing or payday lender. If they had one I missed it. The link says Mountain View, which is larger and might have some. Does this apply to that city as well?

[salin]

7. To cash in on residents of neighboring East Palo Alto?

much of which used to be pretty impoverished.

And - what the heck - an over 400% interest rate?
That is obscene. I have the impression that in the past there were some limits on outright usury.

[BrotherIvan]

9. That happened in the town I grew up

But it was the opposite: the affluent college town did not allow bars, liquor stores or fast food. Right on the border quite literally all of them were right there. Seeing as one could drive across town in less than ten minutes, it sort of was meaningless. But at the same time, strict restrictions kept the town looking very nice and property values way up. The rents are so high in Menlo Park, I would think it would be much cheaper to be in East Palo Alto which they have tried to wall off as much as possible. But I could see something down by the freeway that might serve that purpose. I'm sure Atherton with follow suit!

They should be illegal federally. I think some smart people like Elizabeth Warren are working on it. But perhaps an agency such as the SEC can do something?

[dickthegrouch]

8. Council members quoted do not show up in Mtn View's roster

I think the Mountain View reference in the link is just a Mercury News SNAFU.

[littlemissmartypants]

5. ONLY 414 percent? Does that seem low to anyone?

These predators are everywhere. They are everywhere the military bases are in North Carolina where I am and we see the devastating results.

As the population ages I suspect we will hear more and more of the bastards and their low class exploitation. Meant both ways.

414 percent!
Absurd!

Love, Peace and Shelter.
~ Lmsp