Check-cashing and pay day loan companies are often likened to predatory loan providers that benefit from low-income consumers, while the action to break down in it seems to be getting energy.
The town Council in longer seashore, the 2nd city that is largest in la County, has voted to put a six-month citywide moratorium on brand brand- new check-cashing and cash advance businesses in the reasons which they cause blight and foster crime.
Industry representatives dispute that and argue the storefronts offer a necessary solution for customers.
“Our business overall is developing, and plus much more more and more of the firms are bigger corporations rather than the mother and pops,” stated Mark Thomson, manager of federal federal government relations for Washington-based MoneyTree Inc. “The businesses are situated by Wal-Marts or Starbucks and fit quite definitely into the strip shopping center environments.”
The extended seashore City Council had followed a one-year moratorium that covered the downtown location month that is last. It turned out recommended by Vice Mayor Bonnie Lowenthal and proved therefore well-known that the newest vote took it citywide for 6 months.
Tom Nix, president of Nix Check Cashing, stated he disagreed because of the council’s decision even though it would not affect their two places in extended seashore. Nix is possessed by Manhattan Beach-based Kinecta Federal Credit Union.