There are currently 24 short term lenders in California's San Mateo County, the Mercury News reports. And while none of them operate outside of their designated areas, county officials are creating a "preemptive strike" to avoid future damage.
A draft for a proposed law will go before the county's planning committee next month to limit the location of short-term lending businesses in the area. The ordinance will bar "unincorporated areas" from "cherry picking" from short term laws passed in neighboring cities. "It's subject to change, but yeah, we're looking at restricting the location of short term lending businesses," county counsel John Beiers told the media outlet. "And possibly regulating the hours of operation and having certain security requirements." Greg Larsen, spokesman for the California Financial Service Providers Association, countered that short term loans "are a legitimate, government-overseen source of short-term credit in a competitive market place that's convenient and often less expensive than other options," the news source quotes. California residents can take out loans of up to $300, although a bill was proposed last summer to increase that number to $500. The San Mateo County website notes that supervisor Jacobs Gibson is fighting to maintain the current amount to lessen the impact of impending debt on the county's vulnerable community members.