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. The new ordinance will not change how the currently-operating money lenders in Ogden will operate.
The Ogden payday loans direct lender ordinance
The number of unsecured loans businesses in Ogden, Utah is now limited to no more than 15, according to the new ordinance. This ordinance will affect payday lenders, title lenders, check-cashing companies and short-term loans companies. 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.” Each short term loan business may also be required to show a sign that outlines that their products aren’t for long-term financial solutions. Before the final vote was taken on the ordinance, regarding the color storefronts were painted and additional signage were removed.
How the ordinance will effect payday lenders in Ogden
You will find 21 companies within the city limits of Ogden that are effected by the new ordinance. None of the companies operating in Ogden will have to close. Instead, there will be a threshold of fifteen, and no new stores could be able to open up until that threshold has been dropped below. Signage and placement needs can be in full effect for any new stores that open up from this point forward.
Arguments regarding payday lenders in Ogden
There was heated argument within the Ogden City Council before the new ordinance was passed. The Ogden Planning Commission, in their original recommendation, had suggested a limit of eight lenders. Some argue that these services “disconnect residents from traditional banks” which has a negative impact on economic development. On the other hand, many pay day loan customers don’t qualify for services at traditional banks, and therefore need financial services of some kind.
