Tucson, Arizona, City Council Finalizes Deal to Distribute Payday Loan Companies Around City
By J.J. CameronPayday Loan Writer
After pondering the issue of whether or not to require a quarter-mile between payday loan stores in the state, the City Council voted unanimously Tuesday to limit where these institutions can do business.
Council members said the restrictions were needed to prevent clustering of lending sites and help protect residents from what some have described as exploitative lending practices that charge clients high interest rates and assess stiff fees and penalties.
The ordinance restricts new payday lending operations, not those already in business.
Gertie Salazar, the district manager for Checkmate, said payday lending provides a vital financial bridge for emergencies when people have nowhere else to go, such as when a family member is hospitalized.
She said her stores provide good jobs and said many customers who use payday loans are well-educated. She said the restrictions will limit competition and drive up prices.
March 17th, 2006 at 4:00 pm
[…] But the Southwest Center for Economic Integrity, a Tucson-based consumer advocate which favors banning Arizona payday loans, said the survey does nothing to alleviate its concerns about predatory lending. […]
May 8th, 2006 at 12:19 pm
[…] Several cities in Arizona (including Tempe and Tucson) have passed similar ordinances. […]
May 21st, 2006 at 12:12 pm
[…] During the moratorium, Helding and Wisneski will be looking at what other communities have done to stop more payday loan stores from operating and to address some of the reasons there is a need for such services, they said. In Arizona, for example, there are zoning laws in place for payday advance locations. […]