City of Caldwell officials are looking at options to rein in payday loan businesses.
This morning's Idaho Press-Tribune reports that Caldwell Mayor Garret Nancolas wants to look at possible limitations of the high interest rates that quick cash operators shackle to their customers.
"Oftentimes, these title loan places prey on the people who can least afford to get caught in a trap like that," Nancolas told the Press-Tribune.
A typical Idaho payday loan is usually a two-week loan of approximately $300, with a fee of $15 to $18 per each $100 borrowed.
In particular, Nancolas has tasked City of Caldwell Senior Planner Anne Marie Skinner with proposed zoning changes that would discourage more payday loan businesses from setting up shop in Caldwell.
In February, The New York Times reported that the nation's largest banks—including JPMorgan Chase, Bank of America and Wells Fargo—are "a critical link for the lenders, enabling the lenders to withdraw payments automatically from borrowers' bank accounts." The Times' Jessica Silver-Greenberg reports that in some cases, "the banks allow lenders to tap checking accounts even after the customers have begged them to stop the withdrawals."
The Idaho Community Action Network says when Gem State residents borrow large amounts of money from payday lenders, it begins a vicious cycle.
"They go to social services, which are already very crowded," ICAN's Yuliana Nogales told Citydesk. "It's just like home loans that were given to people who can't afford it. They're given money; they know they can't pay it [back]."