New restrictions against 'quick cash' businesses passed - WMC Action News 5 - Memphis, Tennessee

Reported by Kontji Anthony

New restrictions against 'quick cash' businesses passed

MEMPHIS, TN (WMC-TV) - Shelby County Commissioners are joining governments across America in a payday and title loan lending crackdown.

A commission vote on Monday means quick cash businesses must have special permits.

"On a case by case basis, we're going to review whether it makes sense for a new one of these payday loan or title loan places to go into a new location," commissioner Steve Mulroy said.

The new rules are modeled after strip club regulations, but are even tougher.

"It has to be approved by both the City Council and County Commission as being appropriate for that neighborhood," Mulroy said.

Commissioners say payday and title loan lenders deliberately prey on hard working poor people in a financial bind.

Payday lenders give people a cash advance on their paycheck, and sometimes make up to a 400% profit.  Car title lenders charge a fee, and if you can't pay them back in time, you lose your car.

Most of these businesses are clustered inside Memphis' city limits.
"I think it's extremely important for neighborhoods to have both title and payday lenders restricted from how far they can be from a residential area," commissioner Mike Carpenter said.

The ordinance says they can't open up shop within one thousand feet of another lender, or a quarter of a mile of a residential area.

But it doesn't effect lenders already established.

"If they cease to operate for 365 consecutive days, or just choose to close and want to move somewhere else, they'll be bound by the new restrictions," Carpenter said.

Click here to send an email to Kontji Anthony.

Powered by Frankly