Tuesday, December 17, 2013

Caldwell Approves Tighter Restrictions on Payday Lenders

Posted By on Tue, Dec 17, 2013 at 9:19 AM

The Caldwell City Council has tightened the reins on payday loan operators.

This morning's Idaho Press-Tribune reports that the Caldwell Council unanimously passed an ordinance Dec. 16 that regulates where payday loan businesses can open. Simply put, they won't be allowed in commercial areas and can only operate in so-called manufacturing or light industrial zones. And if a new business wants to open in any other type of zone, they'll need special permission from the Caldwell Council. Existing businesses are not affected by the new ordinance.

Ten payday loan businesses currently operate in Caldwell.

“It’s becoming the dominant business in our town,” said Caldwell Council member Rob Hopper.

A typical Idaho payday loan is usually a two-week loan of approximately $300, with a fee of $15 to $18 per $100 borrowed.

The Idaho Community Action Network says when Gem State residents borrow large amounts of money from payday lenders, it begins a vicious cycle.

"They go to social services, which are already very crowded," ICAN's Yuliana Nogales told Citydesk. "It's just like home loans that were given to people who can't afford it. They're given money; they know they can't pay it [back]."

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