Santa Clara County Board of Supervisors passes ordinance to block check-cashing companies
The Board of Supervisors passed an ordinance Tuesday evening, May 1, that obstructs payday loan providers and check-cashing businesses from starting brand new branches within the unincorporated regions of Santa Clara County.
Payday lenders and check-cashing outlets become a substitute for old-fashioned banking institutions by providing short-term loans and that can charge interest that is effective all the way to 460 %, county officials stated. Board of Supervisors President George Shirakawa stated they passed the ordinance because such loan providers are “predatory” and target residents that are low-income.
In line with the Center for Responsible Lending, such financing companies are disproportionately positioned in African-American and Latino communities, county officials stated.