Long Beach City Council to Curb Spread of Check Cashers and Payday Lenders

Editor’s note: The CFPB, a federal agency, has proposed new rules for payday, car title, and high-cost installment lenders.

 

BUT, they need to hear from consumers- that means you! We have an easy-to-use page where you can weigh in- it only takes a minute and will help bring about important consumer protections with these loans. Please share a line or two in the comments box about why you care about this issue and want to see strong federal reforms.

PS: You do NOT have to be a payday, car title, or installment borrower to sign the petition.

Long Beach payday lenders

Long Beach, California, will soon join other California cities in passing an ordinance to restrict the growth of new check cashers, payday and auto title lenders and other fringe financial entities throughout the city.

On Tuesday, September 17, 2013, the City Council will vote on a “Financial Services Ordinance” designed to protect neighborhoods throughout Long Beach from high cost lenders who target low and moderate income communities vulnerable to financial shortfalls and hardships.

Mauna Eichner and Lee Fukui, residents of Wrigley, are part of a group of community leaders who support the ordinance. They explain, “Predatory lenders depress our neighborhood and strip money out of our local economy, right out of the pockets of our neighbors who can least afford it. By limiting their presence in our city, the City Council makes a strong statement that people are more important than profits made off of loans with 450% interest rates. We want the City to set a “cap” on the number of these businesses at what it is now, or below.”

Liana Molina, a community organizer with the California Reinvestment Coalition, has worked with community leaders in other cities, including San Jose, Sacramento, and Oakland to limit the spread of payday lenders through similar ordinances. She explained, “By voting for this ordinance tomorrow, city councilmembers can stop the spread of these modern-day loan sharks and affirm a vision for a better Long Beach.”

Who: Long Beach City Council, community leaders, and financial justice advocates

What: The City Council will vote on an ordinance to limit where fringe financial businesses can locate in Long Beach. The ordinance would create a “buffer zone” of at least 1,320 feet between similar businesses. Community leaders will be present to make public comment in support of the policy and to push for a “cap” on the total number of these businesses.

Why: Looking forward, the City Council wants to reduce the impact of these businesses, ensure that there is not an over concentration of these stores in any specific neighborhoods, and that the location of these outlets is consistent with the neighborhood plan for each respective area.

When: Tuesday, September 17, 2013 5:00PM

Where: Council Chambers of City Hall, Civic Center Plaza, 333 West Ocean Boulevard, Long Beach, CA 90802

About the California Reinvestment Coalition: The California Reinvestment Coalition (CRC) advocates for the right of low-income communities and communities of color to have fair and equal access to banking and other financial services. CRC has a membership of close to 300 nonprofit organizations and public agencies across the state of California.

Are you a Californian who has used a payday loan and would like to share your story? Do you want to get involved in local efforts to restrict payday lending in our communities? If so, please contact Liana Molina, CRC’s Payday Campaign Organizer: Liana@calreinvest.org  or 415-864-3980.

To stay up to date on financial justice issues in California, especially as they relate to low income communities, and communities of color, you can follow the California Reinvestment Coalition on our Facebook page, via Twitter, watch our movies on ourYouTube Channelsign up to receive our newsletter and action alerts, and of course, visit our website.

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