Wed December 4, 2013
Payday Lending Moratorium Extended In Montgomery
The Montgomery City Council has extended a moratorium on issuing new business licenses for payday lending companies.
Council voted Tuesday to extend a 90-day moratorium by six months. Councilman Richard Bollinger said the extension would give city officials time to examine how the businesses impact Montgomery.
Bollinger says city leaders are looking to foster a diverse business climate, and are unsure of why payday lending businesses are concentrated in specific areas of the city.
The moratorium provides exceptions for payday lending business owners looking to renew their licenses or transfer their license to another person or entity.
Short-term lenders have been controversial among Alabama lawmakers for several years. The companies include title loans, payday loans and check-cashing businesses.
Alabama cities, including Birmingham and Tuscaloosa, have enacted similar moratoriums.
Payday Loan Ban