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Showing an urgency to rein in predatory financing to the working bad, Santa Clara County supervisors Tuesday passed a 45-day moratorium that bans additional “payday” lenders from creating store, while officials draft a legislation which could completely ban new payday companies — or at the least really limit them.
The county has 64 pay day loan storefronts focused in low-income communities, many simply obstructs from one another. Simply two establishments are found in unincorporated areas suffering from the ban that is new. But being a number that is growing of urban centers and counties give consideration to comparable curbs, county officials warn that the trend could drive more loan providers to relocate to areas that remain inviting.
“You don’t wish the floodgates to open,” said Supervisor Dave Cortese, a previous cost savings and loan supervisor whom initiated the moratorium. “If they are forced away from urban centers, they are going to try to enter into county jurisdictions after which it is very hard to obtain rid of them.”