The City Council in Decatur, Ala., is considering a zoning ordinance that would limit where payday lenders can set up shop. It also has drafted a resolution calling on lawmakers to cap payday loan interest rates, which often top 200 percent or even 400 percent on an annualized basis, and continues to push for legislation at the state level that would require lenders to report loans to a database to ensure compliance with the $500 limit.
So far, the database bill has not been passed. State Sen. Arthur Orr says he is open to the resolution, noting, "We don't want a predatory lending environment or one that takes advantage of the poor, that's something that we don't need." Decatur already has implemented a moratorium on issuing new business licenses to payday loan or cash advance businesses, and it requires lenders to have both a state and a city license to enable better tracking of their activities.