New payday stores outlawed in Caldwell

New payday stores outlawed in Caldwell

Caldwell, Idaho (KBOI) - Caldwell wants payday stores to only do business in industrial areas and not in commercial or residential zones.  City council members wanted to know if they passed the pay day loan ordinance would they be able to defend it against lawsuits. The city attorney told them they could defend it and he recommended that the city move forward with the ordinance. 

Residents that have used title loans say it's hard to get out of the spiral of debt once you're in. "It was 435% yearly on that loan, we were paying back a $100 extra and only $30 was going to our principle," Kathryn McNary said about her loan.

The ordinance was unanimously passed. Any new title loan companies wanting to do business in the Caldwell area will now need a special use permit like bars and pawn shops. The ordinance does not apply to existing title loan stores, they will be grandfathered in. 

Caldwell council members say it is the first step in limiting payday loan stores and they hope other cities will soon join their efforts.