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PICO RIVERA – A renewal of the ban on check-cashing businesses may become permanent, officials say.

The town Council issued its last continuance of a short-term ban on check-cashing businesses week that is last. But in accordance with City Manager Chuck Fuentes, the short-term moratorium is merely another formal step toward completely limiting the firms.

“We don’t want any longer of those businesses at all,” Fuentes said.

The firms give short-term loans, to be repaid by clients once they get their paychecks.

In addition they cash checks for a cost, usually according to portion. The price is between ten percent and 25 % associated with the quantity lent.

Eight associated with the loan that is payday occur when you look at the city, while you will find just six conventional bank branches.

The latest period associated with the ban is the very last the town can enact before you take permanent action. Up to now, the moratorium has been around spot for and the extension will last one more year.

A freeze that is long-term check-cashing businesses wouldn’t be the initial such moratorium when it comes to city. About couple of years ago, Pico Rivera stopped accepting facilities that are self-storage. Fuentes said they took criticism that is little your choice, to some extent because there had been few places for lots more storage businesses.

But, check-cashing businesses have successfully overturned limitations in other urban centers.

Some start to see the ban as discrimination. Attorney Roger Jon Diamond said he represented a comparable company in Pomona almost about ten years ago. He fought (and won) the proper for the continuing company become created in he city.

“There’s absolutely nothing incorrect with check cashing except that, being a practical matter, lower-income individuals have a tendency to make use of it,” Diamond said previously this current year. “It’s clear they’re targeting poor individuals.”

Relating to Mayor Gracie Gallegos, the extensive ban is a good action. She said rendering it permanent would lessen criminal activity, and thinks a ban that is permanent be legal.

“Our attorney is wanting involved with it to ensure that we’re perhaps perhaps not stepping regarding the liberties of every company,” Gallegos said. “If there clearly was an appropriate method we can perform it, then definitely we’re going to accomplish it.”

Gallegos said the town would think about a far more policy that is open by which a particular quantity of the firms will be permitted. If a portion of those closed, applications for a payday that is new store will be accepted.

“It’s simply establishing boundaries,” Gallegos said.

Nazih Aburashaid has operated and owned cash Plus on Whittier Boulevard for 3 years. He said he thinks their business performs an ongoing solution for folks in need. But, he said, he doesn’t mind the ban, which eliminates the likelihood of more competition.

Existing companies are grandfathered in and permitted to keep working.

“Now, you can find way too many of those,” Aburashaid said. “I think the people they usually have now are adequate.”