Category payday loans pascagoula ms

New county ordinance to limit lenders that are payday

New county ordinance to limit lenders that are payday

Payday loan providers and check-cashing outlets behave as a substitute for conventional banking institutions by providing short-term loans and that can charge interest that is effective as much as 460 per cent, 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 line with the Center for Responsible Lending, such financing companies are disproportionately situated in African-American and Latino areas, county officials said. Supervisor Mike Wasserman stated he believes payday that is such 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 determined to ensure lending that is payday check-cashing companies usually do not transfer to the unincorporated county areas if San Jose as well as other towns and cities additionally pass comparable ordinances, based on Andrea Flores Shelton, deputy chief of staff for Shirakawa’s workplace.

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