News & Resources

San Mateo supervisor looks for alternatives for short term lenders' high interest rates

Jul 30, 2011 Todd Milner

According to a report from San Mateo County, California, supervisor Rose Jacobs Gibson, county residents pay nearly $6.1 million annually to the 24 different short term lenders that operate in the area, the Redwood City Patch reports. Many of these lenders are located in underprivileged neighborhoods,  In addition, borrowers who seek these loans are subject to interest rates that can be as high as 459 percent. "Short term loans hurt the most vulnerable and they need to have alternative resources," Gibson told the news source. "People do need access to short-term loans, but there must be alternatives to short term loans." According to the Daily Journal, the county Board of Supervisors approved a resolution that would call into question the rates offered by lenders, permit zoning restrictions that prevent them from operating in certain areas and bring in alternative businesses that provide similar services.  Other California cities have or plan to enact laws preventing the spread of short term facilities, Patch reports. Pacifica suspended lender activity within city limits, while Daly City and East Palo Alto are also considering bans.