Ogden, Utah, has capped the number of short-term lenders allowed within city limits. Image from Flickr.

A ordinance passed by the city council of Ogden, Utah, on Tuesday puts a restriction on the number of payday lenders, title lenders and check-cashing companies allowed in the city. This new ordinance is not as stringent as the Ogden Planning Commission recommended. Current payday lenders in Ogden will not be affected.

Ogden, Utah, payday lending ordinance

The ordinance the council passed Tuesday limits the number of in-city, short-term-loan businesses to 15. This ordinance will affect payday lenders, title lenders, check-cashing companies and short-term loans companies. These businesses will also not be allowed to open “within 1,000 feet of a similar business or within 660 feet of a pawnbroker or sexually oriented business.” Finally, all businesses will be required to display a sign explaining that short term loans should not be used as a general financial strategy. Other provisions of the ordinance were removed before it was passed, including a limitation on the color schemes on the exterior of buildings.

Effect on current payday lending businesses

Currently, within Ogden, 21 businesses fall under the ordinance. The new ordinance will not require any of these businesses to close. Instead, no new short-term loan businesses will be able to open until the number drops below the 15-store threshold. Any new stores that open under while this ordinance is in effect will be required to fulfill the placement and signage requirements.

Arguments regarding payday lenders in Ogden

There was heated argument within the Ogden City Council before the new ordinance was passed. The Ogden Planning Commission had recommended the number of lenders be capped at eight. Some members of the Ogden City Council believe that these businesses “disconnect residents from traditional banks,” which they believe harms economic development. On the other hand, payday lending customers and council members point out that the service payday lenders provide can be very useful for residents living paycheck-to-paycheck, and that not being tied to a traditional bank can sometimes be a positive thing.

Short term loans are typically less than $1,500 and do not require faxing or credit checks. Short term loans are similar to installment loans for bad credit and bad credit auto loans.

Short term loans are provided by most banks and other financial institutions, but they come at the cost of a credit check and an application process that is anything but hassle free. The right choice is to apply for short term loans online. The application process takes only a few minutes, and the loan funds are directly deposited to your account in as little as 2 hours.

Am I eligible for a short term loan?

Everybody can apply for a short term loan. You just need to be the citizen of the country where you are applying for the loan. Secondly, you need to have an active checking or savings account where the loan money will be transferred. Third, you must be 18 or older.

If you satisfy these main requirements, you are easily eligible to apply for a short term loan, but then there are other necessary factors that need your attention too so that you can effortlessly apply online.

Online versus walk-in short term lenders

There are a number of banks and financial institutions ready to offer you short term loans. You don’t need to apply for a short term loan many days in advance in order to obtain the loan.

Unlike traditional loans, which are provided after checking credit history and background along with numerous requests for all sorts of documentation, short term loans online won’t make you suffer all that hassle and frustration.

Fees are reasonable with short term loans

Short term loans are very easy to obtain, but remember you must pay back the lender fees and your loan at the same time. Short term loans should be paid back as soon as you get your next paycheck in most cases.

If  you are unable to pay the short term loan back on the day it has to be paid, fees may get doubled or worse. On the other hand, short term loans online are an easy and effortless option for people who have the ability to repay the loan and have enough resources to keep to the scheduled payment plan. Use these loans responsibly, and apply now!

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