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Uploaded: Tuesday, September 18, 2012, 5:35 PM
Temporary moratorium on payday loan shops
Council adopts temporary freeze on new 'alternative financial services'
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by Sandy Brundage
Almanac Staff
While contemplating what to do should a payday loan business express an interest in opening a shop in Menlo Park, the City Council on Sept. 12 voted unanimously for a temporary moratorium on allowing such businesses to open to give staff time to explore the various legal issues involved.
At the police department's request, the city is researching how to use zoning restrictions and permits to regulate the "alternative financial services" industry, which includes payday and auto title loan businesses as well as check-cashing services known for charging interest rates of more than 400 percent.
Council members Rich Cline and Peter Ohtaki suggested making sure that other, less predatory ways of getting cash quickly would be locally available for people in times of need.
City Attorney Bill McClure told the Almanac the moratorium lasts for 45 days, with a possible extension of up to "22.5 months for a total of two years."
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Posted by Central Menlo, a resident of the Menlo Park: Central Menlo Park neighborhood, on Sep 19, 2012 at 12:25 pm Thank goodness our government is here to protect the victims.
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Posted by Barney, a resident of the Menlo Park: other neighborhood, on Sep 19, 2012 at 12:34 pm payday loans = loansharking
in no way do they represent the values of our community.
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Posted by Susannah, a resident of the Menlo Park: Linfield Oaks neighborhood, on Sep 19, 2012 at 1:23 pm Don't usury laws give city law enforcement the means of preventing predatory lending? It sounds tough to get into banning a whole category of businesses. It could be similar to how the BBC lost its liquor license because of illegal activity but there is no ban on all restaurants and bars in the city.
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Posted by WhoRUpeople, a resident of another community, on Sep 19, 2012 at 1:45 pm Gotta love the duplicity of MPrs. Don't care if you can't find affordable housing in town, in fact will push back on any attempt to build it, but have your back when it comes to loan sharks.
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Posted by Central Menlo, a resident of the Menlo Park: Central Menlo Park neighborhood, on Sep 19, 2012 at 1:57 pm MP should ban private equity too. Think of all the harm that can cause.
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Posted by Barney, a resident of the Menlo Park: other neighborhood, on Sep 19, 2012 at 2:06 pm whoRuppl: "but have your back when it comes to loan sharks."
Projecting an opinion for me on affordable housing, while not having a clue on my opinion based on my posts.
I just commented on loansharking and usury. Quit pushing your fantasy on others. Unscrupulous.
Are you a payday lender too?
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Posted by Aquamarine, a resident of another community, on Sep 19, 2012 at 4:08 pm WhoR and Central Menlo make good points (the latter tongue in cheek). The more expensive the housing for hard working, local lower income residents, the more they'll feel pressured to go to a loan shark.
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