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. Money lender or check-cashing companies that are already operating in Ogden will not be affected by the new ordinance.
The payday loans direct lender ordinance in Ogden, Utah
The ordinance the council passed Tuesday limits the number of in-city, short-term-loan businesses to 15. The ordinance will affect all secured loans companies, including check-cashing and title lenders. The ordinance will also limit all new unsecured loans companies from operating “within 1,000 feet of a comparable business or within 660 feet of a pawnbroker or sexually oriented business .” Every short term loan business may also be required to show a sign that outlines that their products aren’t for long-term financial solutions. Other provisions of the ordinance were removed before it was passed, including a limitation on the color schemes on the exterior of buildings.
Effect on current money lender companies
You will find 21 companies within the city limits of Ogden that are effected by the new ordinance. The new ordinance will not require any of these companies to close. Until there are fewer than fifteen stores within city limits, no new stores could be opened up. Any new stores that open under when this ordinance is in effect can be required to fulfill the placement and signage needs.
The debate about payday lenders in Ogden
The Ogden City Council had a very heated debate over the new ordinance. The Ogden Preparing Commission, in their original recommendation, had suggested a limit of eight lenders. One argument is that the Ogden City Council believes “disconnecting residents from traditional banks” hurts economic development. At the exact same time, many customers that use payday loans use them for their intended short-term purpose, and may or may not qualify for a traditional bank’s services.
