Anti-Payday Lending Initiative


Anti-payday lending advocacy work in Santa Clara County is led by the Coalition Against Payday Predators (CAPP), of which SUSV is a member. Payday lending is a predatory business that provides borrowers with high interest loans. This system propagates and sustains poverty by keeping economically vulnerable members of our community in a cycle of debt. Step Up Silicon Valley works to raise awareness of the issue and advocates for policy changes against the predatory payday practice.


In 2013, the CAPP coalition led by the Law Foundation of Silicon Valley moved anti-payday lending efforts forward, from San Jose to Sunnyvale. On August 26, the Sunnyvale Planning Commission unanimously passed a recommendation to establish a stronger payday lending ordinance to the City Council. The Sunnyvale City Council approved the ordinance by a 7-1 vote on September 24. The ordinance caps the number of payday loan shops to 6, enacts new distance requirements, and mandates that lenders provide information to borrowers on alternatives.

In 2012, a similar ordinance was passed in the City of San Jose. CAPP successfully advocated for a cap on the number of payday lending storefronts, making San Jose the largest city in the US to limit payday lenders. The law also requires a minimum distance between other payday lenders and prohibits new stories from opening in predominantly low-income areas.


Law Foundation
Silicon Valley Community Foundation


CAPP continues to develop fair and responsible alternatives to payday loans and to regulate payday lending activities across the US. The Coalition Against Payday Predators (CAPP) is in active discussion with community leaders and innovative thinkers to explore the possibilities of creating alternatives to payday lending and to reform the product as it is currently permitted in California.

For more information on CAPP, contact Kyra Kazantzis, atkyrak@lawfoundation.org.
Follow news about the movement against payday lending here: https://twitter.com/PaydayReform


Payday lending is a predatory loan product with exorbitantly high interest, short-term loans. To make a profit, payday lenders count on the fact that borrowers can’t repay the loan amount in two weeks and are forced to take out yet another loan to cover the repayment. California borrowers take out an average of between 7 and 10 loans per year.