The city of Victorville, CA has put a hold on new business permits for payday lending services. The 45 day hold was put in place to adequately assess the impact of these businesses on the cities low income and minority communities.
The city officials hope taking a step back from payday lenders, check cashing, and car title loan businesses will help the municipality better regulate these industries. These fast money style businesses have surged in CA, and Victorville officials want to ensure they are not overly concentrate and preying upon economically vulnerable communities. A study by the Urban Law and Public Policy Institute shows 42 percent of households with incomes of less than $25,000 per year live within one mile of a check-cashing business in California. These businesses all operate the same way, where a consumer agrees to a very high interest, short term loan that they probably will not be able to repay.
If you are behind on payday loans, contact a qualified debt settlement attorney. Payday lenders are characteristically very aggressive with collection efforts and the loans are always are bad deal for consumers. A qualified debt settlement attorney will defend the consumer from their creditors and likely settle the debts for less than the balance owed.
Author: Kevin Fallon McCarthy