Payday loans may be run out of Salt Lake City on a rusty rail. In case you missed it, here is part one of the story of how Salt Lake City has turned its back on its citizens’ financial well-being.
What certain Salt Lake council members REALLY think
Interestingly, reporter Derek Jensen quotes Councilman Luke Garrott on the matter of having payday loan businesses close to schools. Garrott replies that “If you want to teach kids fiscal responsibility, put one of those stores across the street.”
Yet those in favor of the regulation argue in the direction of squashing a “vicious cycle.” In March of 2007, City Council Member Nancy Saxton raised the voice of payday lending opponents when she proposed the legislation that has essentially been adopted by Salt Lake City council. In a most contradictory fashion, Ms. Saxton first says this regarding no fax payday lenders
I believe their presence is detrimental to the aesthetic appeal of our City’s neighborhoods, commercial and otherwise, as people walk our sidewalks, and they detract from efforts to improve commercial areas.
- Image by Getty Images via Daylife
However, in her very next paragraph
(Payday lenders) generate little pedestrian energy or activity; their presence does not seem conducive to fostering commercial activities that help communities grow.
First of all, what does she mean by “detrimental to the aesthetic appeal?” From what I’ve heard, the stores themselves are very clean and family oriented. If she isn’t talking about the stores, is she talking about the clientele? You’ll have to be very careful there, Ms. Saxton. Even though your apparent assumption is untrue, there is a large religious organization that operates our of your state with a reputation to maintain. Be careful what you say in official documents.
And the contradiction
If there are people that “walk our sidewalks,” there is opportunity. It is not a zoning issue, not a “not-in-my-backyard” dilemma. It is a marketing issue. You develop a community that sells well to its people, you will thrive economically. That extra money coming in doesn’t seem so unaesthetic now, does it?
Payday lenders help people in need
Professional and academic studies show that the removal or unreasonable limitation of payday loans has a detrimental effect on communities. Salt Lake City is making a mistake that has been statistically proven to be avoidable. Payday loans are useful for consumers who encounter the occasional financial setback due to a surprise emergency expense. Regulate away, Utah. Send your people to the sharks and see how aesthetic that is.
I don’t think Salt Lake will ban payday loan buisness
Somebody is up to no good in this issue. It would be most interesting to know who is manipulating this attempt from behind the scenes.
I really think its interesting that people want to get rid of payday loans when we have huge corporations who are basically asking for giant payday loans from the government. If big companies need them don’t you think regular people need them too?
With the way the economy is going, more and more people are turning towards payday loans for help. The numbers have increased dramatically. Similar to those hungry credit dogs, there will be those who will continue to try and banish the industry in hopes to gain more to feed their greed. They claim they are concern about the people’s well being, but their action begs to differ. If the payday loan industry is done away with in Salt Lake, the city will no doubt fall deeper into the current economic crisis.
What ever happened to free enterprise? You have to wonder what the real reasons are behind some of these decisions made by polititions. The government needs to let the public make some of their own decisions.