Youth Take A Stand On Payday Lending's Crippling Affect on Daly City

This evening at a Daly City City Council meeting youth advocates with Youth Leadership Institute (YLI) Peninsula Advocates Investigating Debt Traps (PAID) are requesting that the council adopt an ordinance that limits the number of payday lenders in Daly City to the five currently in operation, the most in all of San Mateo County. The ordinance being requested does not impact established lenders.

Payday lenders have a significant negative impact on our community, according to a report from the Insight Center For Economic Development. The  five payday-lending establishments in Daly City drain $272,845 from the community annually. Of the residents surveyed, a full 25 percent had taken out some type of payday loan.  

Youth advocates believe this ordinance will prevent any more lenders from contributing to the blight of payday lenders in parts of Daly City, such as the Top of the Hill area.  Payday lenders are eight times more likely to be found in communities of color, keeping communities in a vicious cycle of debt. 

“Being in a cycle of debt prevents our community from supporting local businesses in Daly City,” said Alex Cansanay, YLI youth advocate and Daly City resident.

Research has also shown that Payday lenders often trap people into a loan who are unable to pay it back, causing the average customer to take out eight to ten consecutive loans, often going back and forth between two or more payday establishments.

“I’m standing up for my community because I don’t want to see any more families suffer from payday lending debts in Daly City,” said Dominic Bautista, YLI youth advocate and Daly City resident.  

Other residents share similar perspectives. Based on a recent survey conducted by YLI youth advocates 80 percent of residents would support a Daly City ordinance that limited the number of payday lenders operating in the city.

Youth advocates believe this ordinance will protect the city from additional Payday Lending establishments, preventing greater negative economic impact on their community.  Additionally, youth advocates want to ensure families are safe from falling into a cycle of debt caused by payday lenders.  This request will take place at the Daly City City Council meeting Monday, Sept. 9, at 7 p.m. at the City Hall Council Chambers – 2nd Floor —333 – 90th Street, Daly City.

PAID is a program of the Youth Leadership Institute, the Mission SF Financial Center, and the Center for Responsible Lending and receives funding from the Silicon Valley Community Foundation.