kpix-7-2013-masthead kcbs 7-2013-masthead

Santa Clara County Moves To Curb Payday Lenders

View Comments
The storefront of a payday lender in San Jose. (CBS)

The storefront of a payday lender in San Jose. (CBS)

SAN FRANCISCO (CBS/AP) – Santa Clara County has decided to rein in predatory payday loan outfits by imposing a moratorium that prevents more lenders from setting up shop.

Supervisors voted on Tuesday to impose the 45-day moratorium while a law is drafted to restrict new payday businesses or permanently ban them.

Payday lending operations have proliferated in California.

Santa Clara County has 64 payday loan storefronts concentrated in low-income neighborhoods.

County officials are concerned more lenders could move into unincorporated county areas because a growing number of cities are restricting them.

KCBS’ Matt Bigler Reports:

Payday loans attract desperate borrowers. In exchange for a postdated paycheck or benefits check, they get $255 and must pay back $300 when the borrower gets paid in two weeks or a month.

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

View Comments
blog comments powered by Disqus
Follow

Get every new post delivered to your Inbox.

Join 53,874 other followers