Lorene Brown says if it hadn't been for the Great American Payday
store, she wouldn't have had the money for her children's college tuition.
today's economy being what it is, sometimes you have a take a loan like this
and that's what I did," Brown said.
typically take out loans at payday loan stores are those who have poor credit
scores and unable to obtain a loan from a bank.
Still, it was a
sad story that prompted Selma city councilman Michael Johnson to push for a
90-day ban on new payday stores in the city. Johnson says a payday loan shop took
advantage of a friend, a friend who ended up losing his home. The city council
voted in favor of Johnson's proposal with a unanimous vote.
"It was a
situation where he could no longer afford the payments and the interest rate
just kept compounding and they took his car," said the councilman.
his friend has since died.
called the councilman's move 'misguided.'
realize Selma's tax base was strong enough where you could afford to prevent
businesses from coming here," said Moore who manages Great American
allows payday loan stores to charge an interest rate of more than 17% but Moore
argues he has the discretion to charge less.
sometimes do that. In fact, we'll tell them just bring us some cash," said
Either way the
ordinance has the full backing of the mayor.
want to prevent businesses from coming but at the same time we don't want our
citizens to suffer because of it," said Mayor George Evans.
says there is a good chance the council could extend the ban once the initial
90-days are up.
As for Anthony
Moore he is so upset about this ordinance he is thinking about shutting down
his business altogether.
Johnson says the reasoning behind the 90-day ban part of the ordinance is to
slow the growth of payday loan stores in Selma, a cooling off period. The city
has at least 5 of these types of businesses.
don't want any more payday loans in Selma,' said Johnson.
is effective immediately.
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