Within Ogden city limits, a new city ordinance limits the number of private money lenders that can operate. This new ordinance is not as stringent as the Ogden Preparing Commission recommended. Current payday loans direct lender in Ogden will not be affected.
Ogden, Utah, money lenders ordinance
The ordinance the council passed Tuesday limits the number of in-city, short-term-loan businesses to 15. This ordinance will affect private money lenders, title lenders, check-cashing companies and short-term loans companies. These businesses may also not be allowed to open “within 1,000 feet of a comparable business or within 660 feet of a pawnbroker or sexually oriented business.” Finally, all businesses could be required to display a sign explaining that unsecured loans should not be used as a general financial strategy. Other provisions of the ordinance were removed before it was passed, including a limitation on the color schemes on the exterior of buildings.
How the ordinance will effect payday lending in Ogden
You will find 21 businesses within the city limits of Ogden that are effected by the new ordinance. None of the businesses operating in Ogden may have to close. Until there are fewer than fifteen stores within city limits, no new stores can be opened up. If and when a new stores open up in Ogden, they will nevertheless have to fulfill the needs on store placement and signage.
The debate about payday lenders in Ogden
There was heated argument within the Ogden City Council before the new ordinance was passed. The original recommendation of the Ogden Planning Commission. Some argue that these services “disconnect residents from traditional banks” which has a negative impact on economic development. On the other hand, many payday loans no faxing customers do not qualify for services at traditional banks, and therefore need financial services of some kind.
