The city of Montgomery is enacting a temporary ban on new business licenses for payday lending companies.
The 90-day moratorium approved by the City Council on Tuesday also includes businesses that let consumers pawn their car titles.
Alabama cities including Birmingham and Tuscaloosa have enacted similar moratoriums.
Short-term lenders have been controversial among Alabama lawmakers for several years. The companies include title loans, payday loans and check-cashing businesses.
Critics say the companies charge exorbitant interest rates and target lower-income people, while operators say they're providing a valuable service to people who need money quickly.
The Montgomery City Council has been discussing the issue since July.
Mayor Todd Strange says the city will take 30 days to study other Alabama cities with similar laws.
