Menlo Park explores legal issues with payday loan shops | September 19, 2012 | Almanac | Almanac Online |


News - September 19, 2012

Menlo Park explores legal issues with payday loan shops

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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