Clay Places Moratorium on Payday Licenses

May 7, 2013
Trussville Tribune (Ala.) 
credit card news

City councilors in Clay, Ala., have put a freeze on licensing for payday loan, auto title loan, and check-cashing establishments. The resolution stresses the city's opposition to any business deemed as detrimental to the health, safety, or welfare of its residents. It finds that payday advance outfits and other loan-based businesses meet this definition because of the exorbitant fees they impose, which trap borrowers in a "vicious" cycle of debt. The moratorium also points to a 2011 American Society of Criminology study that draws a correlation between payday lenders, violent crime, and declining property values.
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