Penza, 15 December 2015. PenzaNews. Alexei Ryabov, head of the Economy Development Department of the Penza city administration, has announced the results of payday loan organizations check during the weekly city hall session held on Tuesday, December 15.

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Such companies do not require licensing while being controlled by the Bank of Russia, while the municipal authorities are unable to contest anything with them due to legislation, he reminded.

“There are 29 payday loan organizations registered in the Penza region at the moment,” Alexei Ryabov clarified, noting that some companies are branches and territorial departments of larger chains.

“Some are based on private property, some rent offices in municipal property. Only two organizations were found to be behind in their rent payments due to rent recalculation. We sent claims to these companies,” he said.

Some companies of this class work in non-permanent locations, such as kiosks, added the head of Economy Development Department.

“The monitoring helped find out that three such locations were not included in the address system. We prepared a request to the Rosreestr branch. If the request results in us confirming the locations are there illegally, we will take all necessary measures to make them vacate the premises,” he explained.

Alexei Ryabov also informed of the initiative to introduce amendments to the federal legislation.

According to him, the suggestions also concern introduction of limitations on payday loan interest, maximum debt, and issues loan, increasing responsibility for organizations that conceal information about the full cost of the loan, as well as introducing a requirement for payday loan organizations to be located in permanent buildings only.

“As far as our information shows, as of 2016, payday loan organizations will be falling under the Central Bank of Russia requirement to form reserves, just like regular loan organizations,” Alexei Ryabov pointed out, adding that it might lead to a wave of closures in the niche.