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December 11, 2020
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December 11, 2020

Ban on check-cashing organizations may become permanent in Pico Rivera

Ban on check-cashing organizations may become permanent in Pico Rivera

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PICO RIVERA – A renewal of the ban on check-cashing companies could become permanent, officials state.

The town Council issued its last continuance of a short-term ban on check-cashing companies week that is last. But based on City Manager Chuck Fuentes, the short-term moratorium is merely another formal action toward forever limiting the firms.

“We don’t want any longer of those companies after all,” Fuentes stated.

The firms give short-term loans, become paid back by clients if they get their paychecks.

In addition they cash checks for the charge, often according to portion. The price is between ten payday loans South Carolina percent and 25 % of this quantity lent.

Eight associated with pay day loan shops occur when you look at the town, while you will find just six old-fashioned bank branches.

The latest period associated with the ban could be the last the town can enact before taking permanent action. Thus far, the moratorium has been around destination for and the extension will last one more year.

A long-lasting freeze on check-cashing organizations wouldn’t be the very first such moratorium when it comes to town. About 2 yrs ago, Pico Rivera stopped accepting facilities that are self-storage. Fuentes said they took small criticism for your choice, to some extent because there had been few places for lots more storage space companies.

Nonetheless, check-cashing companies have successfully overturned limitations various other towns.

Some start to see the ban as discrimination. Attorney Roger Jon Diamond stated he represented a business that is similar Pomona almost about ten years ago. He fought (and won) the best when it comes to company become created in he town.

“There’s absolutely absolutely nothing incorrect with check cashing except that, as being a matter that is practical lower-income people have a tendency to put it to use,” Diamond said earlier in the day this present year. “It’s clear they’re targeting poor individuals.”

In accordance with Mayor Gracie Gallegos, the extended ban is just a good action. She stated which makes it permanent would reduce criminal activity, and thinks a ban that is permanent be appropriate.

“Our attorney is searching involved with it to ensure that we’re maybe not stepping regarding the legal rights of every company,” Gallegos stated. “If there was a appropriate means it, then definitely we’re going to accomplish it. that individuals may do”

Gallegos stated the town would start thinking about a far more available policy, in which a specific quantity of the firms could be allowed. If a share of those closed, applications for a brand new pay day loan shop could be accepted.

“It’s simply establishing boundaries,” Gallegos stated.

Nazih Aburashaid has operated and owned cash Plus on Whittier Boulevard for three years. He stated he thinks their business executes an ongoing solution for individuals in need. But, he stated, he does not mind the ban, which eliminates the likelihood of more competition.

Current companies are grandfathered in and permitted to keep working.

“Now, you can find way too many of those,” Aburashaid said. “I think the people they usually have now are sufficient.”

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