Within Ogden city limits, a new city ordinance limits the number of personal loan company that can operate. The proposal that was eventually passed was about twice as liberal as the Ogden Preparing Commission had recommended. Payday loans direct lender or check-cashing businesses that are already operating in Ogden will not be affected by the new ordinance.
The payday lending ordinance in Ogden, Utah
In Ogden, the number of businesses that offer some type of short-term loan services can be limited to no a lot more than 15. The ordinance is written in such a way that it will affect short term loan companies, check cashing companies, title lenders, or payday lender. Any new short-term loan business will not be allowed to open up “within 1,000 feet of a comparable business or within 660 feet of a pawnbroker or sexually oriented business.” Finally, all companies could be required to display a sign explaining that short term loan should not be used as a general financial strategy. There were a lot more provisions within the originally proposed ordinance, but they were removed before the final vote was taken.
How money lenders in Ogden will be changed
You will find 21 within the city limits of Ogden that are effected by the new ordinance. The new ordinance will not require any of these businesses to close. Instead, there can be a threshold of fifteen, and no new stores will be able to open up until that threshold has been dropped below. If and when a new stores open up in Ogden, they’ll nevertheless have to fulfill the needs on store placement and signage.
The debate about payday lenders in Ogden
The Ogden City Council had a very heated debate over the new ordinance. The Ogden Preparing Commission had recommended the number of lenders be capped at eight. One argument is the Ogden City Council believes “disconnecting residents from traditional banks” hurts economic development. On the other hand, many payday loan customers do not qualify for services at traditional banks, and therefore need financial services of some kind.
