Urban planning community

+ Reply to thread
Results 1 to 19 of 19

Thread: Payday loan businesses

  1. #1
    Cyburbian SW MI Planner's avatar
    Registered
    Feb 2002
    Location
    Michigan
    Posts
    3,179

    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
    Registered
    Aug 2005
    Location
    in a meeting
    Posts
    8,918
    yipes, what's a check and go place?

  3. #3
    Cyburbian SW MI Planner's avatar
    Registered
    Feb 2002
    Location
    Michigan
    Posts
    3,179
    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
    Registered
    Apr 2003
    Location
    In a new discovered reality where it doesn't snow
    Posts
    13,834
    Retail/Service

    I look at them as legalized loan sharks.
    "A long habit of not thinking a thing wrong, gives it a superficial appearance of being right, and raises at first a formidable outcry in defense of custom. Time makes more converts than reason." - Thomas Paine Common Sense.

  5. #5
    Cyburbian Richmond Jake's avatar
    Registered
    Aug 2001
    Location
    Jukin' City
    Posts
    16,982
    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

  7. #7
    Cyburbian Seabishop's avatar
    Registered
    Nov 2002
    Location
    USA
    Posts
    3,753
    We'd probably consider them "financial institutions."

  8. #8
    Cyburbian
    Registered
    Feb 2004
    Location
    ????
    Posts
    1,184
    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
    Registered
    Apr 2005
    Location
    Section 14-12-7, 3rd PM
    Posts
    2,096
    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
    Registered
    Jul 2005
    Location
    Lone Star State
    Posts
    640
    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
    Registered
    Feb 2006
    Location
    I'm not sure where I am...or where I want to be
    Posts
    543
    predatory lending

  12. #12
    Cyburbian Planner Hottie's avatar
    Registered
    Dec 2005
    Location
    under a pile of unmailed thank you cards
    Posts
    110
    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
    Registered
    Feb 1998
    Location
    Greensburg, Kansas
    Posts
    3,000
    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
    Registered
    Aug 2005
    Location
    Millywauk
    Posts
    55
    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
    Registered
    Aug 2001
    Location
    South Milwaukee
    Posts
    8,935
    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
    Registered
    Mar 2004
    Location
    Where the weak are killed and eaten.
    Posts
    6,247
    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 JNA's avatar
    Registered
    Jun 2003
    Location
    De Noc
    Posts
    19,328
    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
    Oddball
    Why don't you knock it off with them negative waves?
    Why don't you dig how beautiful it is out here?
    Why don't you say something righteous and hopeful for a change?
    From Kelly's Heroes (1970)


    Are you sure you're not hurt ?
    No. Just some parts wake up faster than others.
    Broke parts take a little longer, though.
    From Electric Horseman (1979)

  18. #18
    Member CosmicMojo's avatar
    Registered
    Feb 2006
    Location
    I'm not sure where I am...or where I want to be
    Posts
    543
    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
    Registered
    May 2003
    Location
    Milwaukee
    Posts
    484
    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?

+ Reply to thread

More at Cyburbia

  1. Replies: 3
    Last post: 07 Dec 2011, 9:24 AM
  2. Student loan consolidation
    Student Commons
    Replies: 12
    Last post: 02 Feb 2009, 10:42 AM
  3. Revolving loan funds and loan underwriting
    Economic and Community Development
    Replies: 5
    Last post: 28 Feb 2007, 1:52 PM
  4. Inter-library loan
    Friday Afternoon Club
    Replies: 8
    Last post: 10 Nov 2006, 4:21 PM
  5. Payday loan stores
    Land Use and Zoning
    Replies: 7
    Last post: 18 Nov 2002, 1:52 PM