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City Wants to Limit Pay Day Lenders

They're tough to miss: the neon colors, the promise of fast cash. But some folks in Springfield want them gone.

"Even though these businesses are legitimate, they have the appearance of a predatory lender. They prey on people's emotions," said Alderman Debbie Cimarossa.

There are 20 pay day and title loan lenders in the Capital City, and Cimarossa says they're concentrated in pockets where they can take advantage of lower-income communities.

"Other cities have been successful at not eliminating, but minimizing the impact on their communitiies," said Cimarossa.

The new ordinance would only allow these lenders to build in certain zones, staying atleast 750 feet away from any other advance loan company. "

"One of the problems we run into is when businesses are thinking about expanding to the Macarthur area, they often say well 'That neighborhood is just a bunch of payday loan places," said Michelle Higginbotham, Vice Chair of the Macarthur Boulevard Business Association.

There are eight loan companies in her neighborhood, the highest number in the city. Neighbors complain it's haulting growth.

"Particularly because of the high concentration in the area, we'd like people to see Macarthur as more than just payday loan stores, more family and neighborhood family businesses, and we think this is one of the things standing in our way," Higginbotham said.

Jaimie Fulmer, spokesman for one of the largest pay day lenders in the country, Advance America, said in a phone interview:

"It's bad policy to begin the process of trying to place undue restrictions on one particular business that you're singling out. We pay rent to local landlords, and help local people."