The county commission in Nye County, Nevada,  is considering changing the minimum distance requirement between payday advance loans stores. Surprisingly, in a time when many lawmakers are placing more restrictions on payday loans, they are thinking of making it smaller.

Currently the minimum distance allowed between two payday advance loans stores is 1,500 feet. Last week the Nye County Commission denied a payday loans store’s request for a waiver. The commission assured the company’s attorney that they will review and reconsider the minimum distance code.

Urban planning with a purpose

In this case, Cash AdvantEdge was denied a conditional use permit because it wanted to open a kiosk inside a Rent-A-Center. Because the Rent-A Center was next door to a Super Pawn, the company was not allowed to open the kiosk. Super Pawn also gives payday advance loans.

Commissioners agree that the purpose of the code is to prevent the proliferation of payday loan stores and other similar businesses. However, they realize that is some cases the minimum distance requirement isn’t the most appropriate code to follow.  Commissioners said they will consider a density requirement instead of a minimum distance requirement.

My two cents

I think the commission is wise to reconsider its code. The minimum distance requirement not only hurts businesses, it hurts consumers giving them fewer choices. It means that instead of consumers going to their preferred company for their payday advance loans, they instead are relegated to going to the most convenient location in many cases.

I don’t see the logic of placing a density requirement, either. That also limits consumers’ choices. Also, when you limit the supply of something, the prices go up; that’s how capitalism works. Healthy competition keeps prices at a level that is acceptable to consumers.

However, if the commission’s sees fit to limit the number of payday advance loans stores anyway, the density requirement is a more straightforward way of achieving that.