Montgomery council vote a bold step to protect consumers from spread of high-cost lending

Arise Citizens’ Policy Project executive director Kimble Forrister issued the following statement Wednesday, May 21, 2014, on the Montgomery City Council’s vote May 20, 2014, to limit the locations where new payday lenders and title pawn companies can open:

“Montgomery has lived up to its role as Alabama’s capital city by taking a bold move to protect its citizens from high-cost lending. Montgomery residents should applaud their local leaders for the new ordinance limiting payday and title lenders’ ability to keep spreading across the city. Clusters of these storefronts create blight, and high interest rates leave too many desperate borrowers trapped in deep cycles of debt.

“People deserve fair credit terms, but triple-digit annual interest rates on payday and title loans are nothing of the sort. Statewide reform is only possible at the Legislature, but the City of Montgomery deserves praise for acting boldly to help protect citizens from legalized usury.

“Many other cities across the state also have passed moratoriums or restrictions on such lenders, including Birmingham, Decatur, Eufaula, Jasper, Northport and Tuscaloosa. Support for lending reform is growing across Alabama, and we’re excited that momentum for change keeps building.”

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