Birmingham City Council Extends Moratorium on Payday and Title Lending Businesses
FOR IMMEDIATE RELEASE
Contact: John Long
Birmingham, AL – The Birmingham City Council today voted to extend the moratorium on payday and title lending businesses for six more months. The current moratorium expires on December 19, 2013. The moratorium was first approved by the council in 2011, and was extended in 2012.
“Payday and title loan businesses have an adverse impact on citizens, their families, local neighborhoods and communities nationwide,” said Councilwoman Lashunda Scales, who sponsored the original ordinance.
Scales also believes that the proliferation of these types of businesses hinder economic development. “It is the council’s attempt to resolve this issue by implementing zoning restrictions to reduce the number of payday and title pawn businesses in any given neighborhood, while trying to stimulate economic growth,” said Scales.
After a public hearing, an ordinance to set zoning restrictions on payday loan and title pawn business was delayed by one week. Council President Pro-tem, Jay Roberson recommended the delay to allow time for new councilors to become more familiar with the proposed ordinance.
The economic development and planning and zoning committees are working together to address the issue of “clustering” of these kind of businesses. City officials will petition the state legislature to introduce further legislation during the 2014 session.
The hearing was set and announced at the November 5th city council meeting.