San Diego General
San Diego one of California’s largest cities (only second to Los Angeles) and the eighth largest one in the United States. Situated in a year-round climate and scenic coastal area, it has become an attraction for a variety of businesses, including mortgage and payday loan lenders. These have taken up quite a niche in the city’s and county’s market. Most likely, that would be because there is a good share of small- and middle-income population, who usually address such firms. In many ways, payday lenders have attracted clientele by offering an opportunity to apply for a loan online and get cash almost immediately.
There are a number of payday loan firms in San Diego, which operate on a legal basis and strictly abide by the law, which regulates this kind of activity. There was a time when these firms were spawning and lack of control would result in many citizens falling into the debt pit and facing collection abuse. The current legislation has imposed some limits on payday lenders. The most reputed lenders in San Diego are: USA Checks Cashed, Checkmate, Fast Auto and Payday Loans, America Loans, Sun Cash, The Check Cashing Place, etc.
How are Payday Loans Regulated in California?
The loan cap in San Diego and the rest of California is $300 with an APR not exceeding %460. The loan period is 31 days, charges should not exceed 15% per $100. Any and all transactions between a lender and a borrower should be stipulated by an agreement, which should specify loan size, loan period, APR, and other information pertaining to the deal. Lenders are not allowed to take any abusive actions against borrowers, who fail to pay on due dates. To avoid the vicious circle, the law prohibits rollovers and does not allow lenders to grant loans to customers, who have not repaid yet or who are still indebted. Granting loans online is allowed, but the procedure should be controlled.
How It Started
San Diego’s economy exploded in the late 1800s through early 1990s, fueled by land speculation and railroad construction and finally shaped by the military sector pretty much boosted by the Spanish-American War. Favorable weather conditions and geographic location made it an attraction for navy and aviators. The two world wars, the construction of the Panama Canal predetermined the city’s fate of being a major military, commercial and transportation hub. Today, these areas have been supplemented by tourism, real estate, high-tech, and the banking industry. The latter laid the ground for the now thriving payday lending market.
Demographic and Social Makeup
As of now, San Diego boasts a municipal population of 1,419,520 people; the urban area counts 3, 210,310 people. The racial composition seems to reflect the general trend observed across the nation: the white population is decreasing relative to Hispanic and Asian. Since 1990 until 2010, it was down by around 20%. Last estimates say that there are 64.7% of whites, 30% of Hispanic/Latinos, 16.8% of Asians and 6.4% of African Americans. The city’s rapidly growing economy attracts people from around the world, putting San Diego on the list of the fastest-growing cities in the USA.
The population appears to be younger than in some other places in California: the median age is 34.3 y/o; 67.6% of people are economically active, the unemployment rate is 7%. Family dual income is $54.200.
Homeownership is 46.8%, and it appears to be more affordable for married couples than for individuals, regardless of sex. Median home value is $523,012 with rent size averaging $1925 and annual rent burden reaching 22.8%.
The continuing increase in population goes hand in hand with social stratification. As long as there is a significant share of low- and middle-income population in San Diego, there is ample ground for the payday lending segment to evolve.
Businesses in San Diego
San Diego is home to several major wireless technology manufacturers, such as Qualcomm, LG Electronics, Nokia, Cricket Communications, Kyocera International and Novatel Wireless. The biotechnology sector is represented by hundreds of companies. The United States Navy and the University of California are among the biggest employers in the area.
Some official sources of data we used to build this page: