Fresno Pushes Payday Loan Limits, Critics Stress Financial Dangers

November 21, 2013
ABC - KFSN Fresno (CA) 
payday lending news

There are 66 payday lenders already licensed to do business in Fresno, Calif., so officials there are taking steps to check the local growth of such companies -- which state regulators say charge annual interest rates of about 460 percent.

City councilors approved a plan requiring new payday loan outlets to obtain special permits. They hope to apply zoning and land-use laws to block the firms from the poorest parts of Fresno, where critics say the businesses cluster and draw low-income borrowers into a cycle of borrowing and debt. "When it's all said and done, seven months later, on average, folks are way further in debt than they were to begin with," said Andy Levine of Faith In Communities, which would like to see the existing 66 lenders in town regulated more tightly.

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