Not municipalities are getting involved in payday lending regulation. Casa Grande in Arizona is trying to change their zoning laws to limit payday loan stores to establish distance requirements for payday loan stores.
The article also goes on to state, “the city cannot pass laws that would put an operation out of business just because it is not wanted there. Any change to the zoning laws would affect only new payday loan stores. The hope is to control their proliferation, given that more and more of the stores have been popping up.”
This is worth noting because we’re seeing it more and more around the country. For example, in Peoria, Illinois that is trying to pass a 180 day moratorium on new building permits for payday loan companies.
Many critics like to blame payday loan stores for hurting real estate in an area. Personally, I think it would be deceptive to control what people see and don’t see, when it’s legal to give a payday loan.
Less competition can only hurt the consumer and help the lenders that are already in place.
