The new year started with a victory for SVCF and our partners working to curb predatory payday lending practices in the Bay Area.
SVCF's economic security program officer, Rafael O. Morales, joined other organizations from the Coalition Against Payday Predators to testify at the Campbell City Council meeting this week.
Morales and others talked about how payday lending can often create a growing circle of debt that is difficult for borrowers to escape. With payday lending, a lender makes a relatively small, short-term loan to a borrower, often with interest rates over 400 percent. This practice frequently drains wealth from low-income communities and communities of color.
The council also heard a personal story from a borrower who shared his harrowing experience with payday loans.
After the testimony, the Campbell City Council voted unanimously for a restrictive ordinance that caps the number of payday lenders that can operate in the city. The ordinance also establishes specific zones within the city where payday lenders can operate -- without disproportionately targeting low-income families. The ordinance will further enforce compliance on business hours, lighting and signage requirements.
SVCF has focused on curbing payday lending through our economic security work. We provide grants to area organizations that advocate for anti-payday lending policies, raise awareness about predatory payday lending practices, and support the development of cost-effective alternatives.
The Coalition Against Payday Predators has received grants in support of their anti-payday lending work from SVCF. We are proud to support the Coalition Against Payday Predators and its member organizations that worked on the effort with the Campbell City Council:
- Asian Law Alliance
- Catholic Charities of Santa Clara County
- Law Foundation of Silicon Valley
- Sunnyvale Community Services
- St. Joseph's Family Center
- United Way Silicon Valley
- West Valley Community Services
- Working Partnerships USA.
Learn more about SVCF's work to curb payday lending:
- SVCF has helped 12 jurisdictions in Silicon Valley restrict payday lending
- In 2015 SVCF spearheaded a coalition of community foundations to advocate for national policy that curbs payday lending
- Access our reports and other resources on payday lending
- More information about our economic security strategy and grants