Some Chattanooga City Council Members Want Limits On Pay Day Loan Providers

CHATTANOOGA,TN,(WDEF)-There are now dozens of pay day loan providers in the Tennessee Valley.
  City Council’s Carol Berz and Russell Gilbert feel the shops such as Check Into Cash decrease property values and increase crime.

Jabo Covert, Senior VP Government Affairs,Check Into Cash,"We are not clustering we are going where the people are, no more clustering, than McDonalds and Wendys want to be on busy roads, so the second thing we heard from council, we were a reason for crime in the neighborhoods that also amazes us, as we are on Shallowford road located in front of J Alexanders and Starbucks."

Covert says the proposed ordinance could actually benefit their company which is now one of the biggest pay day loan providers in the nation.

Jabo Covert, Senior VP Government Affairs,Check Into Cash,"We have three stores in the city limits of Chattanooga and we don’t have any interest in adding any more so again a solution looking for a problem, but what is interesting about it is it actually helps us because it limits competition."

Pay day loan users see no need for the ordinance.

Christopher Walker, Pay Day Loan User,"You know I don’t see why there should be limit on how many places could be here to borrow money, I mean Chattanooga is a big place, there is a lot of people here, so I mean we kind of need it"

Walker is just one of thousands of pay day loan users in Chattanooga and feels restrictions on the number of pay day loan providers and opening hours could limit competitive rates.

Christopher Walker, Pay Day Loan User,"We use them all the time, holidays, birthdays, I mean all kind of stuff, you need money and sometimes you need a little bit extra."

The ordinance could also affect pawnbrokers and title pledge lenders.

Categories: Local News

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