Birmingham leaders want to team up with state lawmakers to curb payday loans operating in the Magic City.
You don't have to go far to find a payday loan operation in Birmingham. Supporters of the businesses argue it's a good way to provide needed money to those who need quick cash. But others, like Birmingham City Councilwoman LaShunda Scales, say payday loans target the poor.
"Payday loans have really impacted the working poor in Birmingham. That is why this is such a passionate legislation I've put forth because it hinders economic development," Scales said.
The Birmingham City Council is expected to back state Representative Patricia Todd's efforts to restrict payday loans in the city with a bill in next month's legislative session.
"One is to control interest rates so they can't charge 400 percent on a loan. Also to make sure they can make installment payments instead of having to pay the whole payment in 14 days," Todd said.
Todd also wants to create a data base to prevent a person from taking out multiple pay day loans at one time. So far Todd's efforts to pass payday loan regulations have come up short in the state legislature.
"We are looking at the money they are giving people. They have raised a ton of money and they have made it clear they going to make sure they get people elected who will not vote for this regulation," Todd said.
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