County Commission working to restrict payday loan businesses - WMC Action News 5 - Memphis, Tennessee

Reported by Andrew Douglas

County Commission working to restrict payday loan businesses

MEMPHIS, TN (WMC-TV) - The Shelby County Commission is working on a plan to keep payday loan businesses out of Shelby County neighborhoods.

Citing studies that show the companies increase crime and lower property values in neighborhoods they're in, Shelby County commissioner Mike Carpenter wants restrict where they can operate.

Monday, he submitted an ordinance they would not allow payday business to be within one thousand feet of a church, school, park, residential area or other payday loan business.

Commissioners passed a first reading of the ordinance.

"They are so close together is that what a person will do is that they'll go and borrow money from one of these locations and then when it comes time to pay it back and they're still short they'll go to another location, bring out another loan to pay off the previous loan and this cycle continues," Carpeneter said.  

The ordinance must pass two more readings before the zoning change becomes law.          

The new law would only affect new payday loan branches. The businesses operating now would be grandfathered in.


Click here to e-mail Andrew Douglas.

Powered by Frankly