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Thread: Payday loan businesses

  1. #1
    Cyburbian SW MI Planner's avatar
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    Payday loan businesses

    How does you define the check and go types of places? Is it retail, financial, etc?

  2. #2
    Super Moderator luckless pedestrian's avatar
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    yipes, what's a check and go place?

  3. #3
    Cyburbian SW MI Planner's avatar
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    Quote Originally posted by luckless pedestrian
    yipes, what's a check and go place?
    Sorry, it's like a cash advance type of place. I am not even sure how it works. Here is some wording from a website:

    "Payday Cash Advances that are Quick, Easy, and Confidential. Our payday advances put money into your hands fast. Just write us a personal check, we'll hold it and give you the money you need right now. Simply bring your photo ID, latest bank statement and proof of income to one of our locations. It only takes a few minutes to receive a payday advance from Check Into Cash!"

  4. #4
    Cyburbian michaelskis's avatar
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    Retail/Service

    I look at them as legalized loan sharks.
    There is no such thing as failure, only learning experiences. However, it is our choice to learn the lesson and change or not.

  5. #5
    Cyburbian Richmond Jake's avatar
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    Finance and Insurance, code 522390 in NAICS. We just went through this.
    Annoyingly insensitive

  6. #6
    Yep, financial, and Mike's right: these people prey on desperate folks, IMO.
    Je suis Charlie Hebdo. Je suis Bataclan. Je suis Bruxelles. Je suis Nice.

  7. #7
    Cyburbian Seabishop's avatar
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    We'd probably consider them "financial institutions."

  8. #8
    Cyburbian
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    We classify them by themselves. Here is our definition: Check cashing" means cashing a check for consideration or extending a deferred deposit loan and shall include any other similar types of businesses licensed by the state pursuant to the check cashing registration act. No check cashing or deferred deposit loan business shall be located within six hundred feet (600') of any other check cashing business. Distance requirements defined in this section shall be measured in a straight line, without regard to intervening structures of zoning districts, from the entry door of each business. One check cashing or deferred deposit loan business shall be allowed for every ten thousand (10,000) citizens living in the city of XXXXX. The term "check cashing" shall not include fully automated stand alone services located inside an existing building, so long as the automated service incorporates no signage in the windows or outside of the building.

    The stars must be aligned, I agree with mskis on this.
    Last edited by cololi; 28 Feb 2006 at 2:21 PM.

  9. #9
    Cyburbian
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    Quote Originally posted by cololi
    We classify them by themselves. Here is our definition: Check cashing" means cashing a check for consideration or extending a deferred deposit loan and shall include any other similar types of businesses licensed by the state pursuant to the check cashing registration act. No check cashing or deferred deposit loan business shall be located within six hundred feet (600') of any other check cashing business. Distance requirements defined in this section shall be measured in a straight line, without regard to intervening structures of zoning districts, from the entry door of each business. One check cashing or deferred deposit loan business shall be allowed for every ten thousand (10,000) citizens living in the city of Taylorsville. The term "check cashing" shall not include fully automated stand alone services located inside an existing building, so long as the automated service incorporates no signage in the windows or outside of the building.

    The stars must be aligned, I agree with mskis on this.
    Geez, we have four in a town of 18,000. Two of them are next door to each other I'll bet we have no regulation on them.

  10. #10
    Cyburbian Random Traffic Guy's avatar
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    They do serve a function for those without bank accounts. And the payday advance loan fees can be less than the bounced check penalties from a bank, if a person is using the service to get money to cover costs until a paycheck comes in.

  11. #11
    Member CosmicMojo's avatar
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    predatory lending

  12. #12
    Cyburbian Planner Hottie's avatar
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    Quote Originally posted by cololi
    No check cashing or deferred deposit loan business shall be located within six hundred feet (600') of any other check cashing business.
    I like it! Anything similar for pawn shops?

  13. #13
    Cyburbian mike gurnee's avatar
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    We have 10 of them in our burg of 30,000. usually within the line of sight of a Dollar General (or one of its clones). Four are also pawn shops. Put them side by side, may reduce the total number by half.

  14. #14
    Cyburbian mique28's avatar
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    We recently went through a process to include a seperate land use for check cashing places. Our effort reclassified actual banks etc. as "financial institutions" and check cashing places as "loan offices"

    Our definitions

    62.1 Financial Institutions: A bank, trust company, savings bank, savings and loan association or other savings institution, or credit union, chartered and supervised under state or federal law.


    91.1 Loan Offices: A person or other legal entity, other than a financial institution as defined in this zoning code, that is licensed by the Wisconsin Department of Financial Institutions and engages in the business of providing loans to its customers including loans secured by a lien or mortgage, or equivalent security interest, on real property.


    We then made sure to make loan offices not permitted in most districts and only permitted as conditional uses in the commercial areas where they were already established. This code change has resulted in the loss of one "check and go" that tried to move to a new location.

  15. #15
    Cyburbian Emeritus Chet's avatar
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    In the past I've called them out as loan stores and cash advance establishments. We wrote them as being specifically excluded in several zoning districts where we were trying to encourage upscale uses.

  16. #16
    Cyburbian DetroitPlanner's avatar
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    Quote Originally posted by CosmicMojo
    predatory lending

    also the devil. I've seen these things mostly in retail type developments, either as part of a strip mall or in the same business as a liquor store.
    We hope for better things; it will arise from the ashes - Fr Gabriel Richard 1805

  17. #17
    Cyburbian Plus
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    Good News out of North Carolina -

    The three major payday lenders still operating in North Carolina will stop offering quick-cash loans in the state, just about eliminating payday lending here, Attorney General Roy Cooper announced Wednesday.

    The agreements come after the state banking commissioner ruled in December that Advance America, the state's largest chain, was breaking state lending laws by charging effective annual rates of more than 400 percent on loans.
    The state's Consumer Finance Act caps annual percentage rates on small loans at 36 percent.
    Article link: http://www.fayettevillenc.com/article_ap?id=81459

  18. #18
    Member CosmicMojo's avatar
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    I can't help but think if we gave people a better financial education, fewer people would have to resort to these types of places. Those living paycheck-to-paycheck think they can't get enough money together for a checking account, but there are modest plans with no minimum balance.

    400% interest is taking advantage of needy people.

  19. #19
    Cyburbian iamme's avatar
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    Quote Originally posted by CosmicMojo
    I can't help but think if we gave people a better financial education, fewer people would have to resort to these types of places. Those living paycheck-to-paycheck think they can't get enough money together for a checking account, but there are modest plans with no minimum balance.

    400% interest is taking advantage of needy people.
    I also think this is partly a problem of banks not serving this market. My credit union has just started a service that offers these types of loans at reasonable rates. However, people must become members to join, how many banks have you seen try to enter this field?

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