Caldwell Considers Restricting High-Level Interest Rate Loan Lenders
Photo: Video by IdahoOnYourSide.com
Caldwell city council is considering passing a new ordinance that would effectively keep new high interest loan companies from setting up shop in the city.
The ordinance would force new companies that offer payday or title loans to build in industrial districts, away from commercial areas.
The bill is supported by the interest group Idaho Community Action Network (ICAN). The group says high interest companies prey on low-income people who are desperate.
"I see title loans as a problem for the community,” said Gordon Counsil, who supports the city’s proposed bill. “From the standpoint of an economist, these title loans draw more money out of a local economy and send it out of state. They are a part of larger networks."
"I think a lot of people think we're rip-offs,” said Christine Devane, Manager of the Title Max in Caldwell. “They may think that but we are for people out there when the unexpected happens to them and they need that fast money."
Businesses that currently operate in commercial districts would be unaffected by the ordinance.
An owner of one payday loan business says his operation is cast in a poor light. He says he gives out high-risk, short-term loans. He says this justifies the level of interest put on them.