City tries to regulate quick-cash loan businesses

Not our city — but the city of Peoria, Il is pushing for zoning regulations to limit clusters of "convenience cash stores" in their community. This is something we might like to consider here in Lake Highlands, where I've noticed at least two of these outfits pop up (Northwest Highway/Ferndale, Walnut/ Audelia) in the past months.

Note how one of the Peoria councilwomen quoted in the article says that the growth of payday and title loan shops in the city can "signal" a decline in surrounding neighborhoods."The perception is that property around them is not very valuable and there is a decline in the area," she said. Ouch. Not everyone believes this, I'm sure, but the loan places near my house sure don't give me any warm fuzzies. The owners of the loan shops of course defend their existence and say clusters of payday loans are no different than clusters of CVS/Walgreens. But I can't get shampoo and Claratin at Loan Star Title Loans. 

Comments

[KevinH]

Once upon a time businesses were harassed and forced out of business because their products were against the moral values of most in the community.
"No erotic lotions in my neighborhood!" was a battle cry you would likely hear.
"Get those filthy head shops out of here!"
"Strippers promote crime!"

Now we find ourselves with payday loan stores that 'create a perception of decline'. What business will be that next target of our fickle opinions? Will we attempt to shut down Jack in the Box because they offer food for sale that could potentially harm our health and thereby create a financial burden on Medicare? Some people think Ford trucks in driveways create a perception of decline. Should we target Ford trucks?

Interfering with supply and demand in the free market can often have unintended consequences. In my opinion, it is much more important to preserve freedom. If a citizen does not like a payday loan store in their neighborhood the citizen should open a charity next door to supply the demand for short term loans. Allow the private sector to address the problem rather than attempting to legislating a solution. Stop trying to hand over the freedom of others. You never know, you could be the next target.

[Steven Clary- VP of Membership, LHAIA]

The Lake Highlands Area Improvement Association (LHAIA) shares the concern of many about payday loan, title loan, tax refund loan and similar businesses. These businesses not only take advantage of borrowers by charging extremely high rates of interest (100% and more), but also often maintain an unkempt facade covered with unattractive signage. We believe that such businesses send a message that the area served is in decline.

There are entirely too many of these “businesses” in certain parts of our neighborhoods and in the City generally. Many convenience stores engage in this business in addition to stand alone stores. This type of loan business appears to be remarkably free of oversight, even though it resembles “loan sharking.”

Several weeks ago, the LHAIA submitted a proposed ordinance that would limit the number of these “businesses” through zoning restrictions. The proposed ordinance is similar to one adopted by the City of Mesquite. We encourage everyone to contact their Council person to support such an ordinance.