On November 18 new law restrictions regarding payday loan stores and pawn shops were passed in Nashville. This time these are restrictions concerning shops’ location. And the purpose of new rules is to prevent payday loan stores and pawn shops for allocating too close. Read below and you will get more information about the reasons why.
It’s worth noticing that the bill was sponsored by the councilwoman Mrs. Jacobia. Major idea of the project is to stop cash advance lenders from allocating their shops very close. There should be minimum a quarter mile between stores.
The bill was supported by all the councilmen. They explain that within last few years it was possible to see how spreading of some business influence the society. And they find many negative points in this influence. For example, too many payday loan stores in one area can stimulate rising of crime rate and negatively impact the key economic sectors of the city.
Original bill was intended to regulate size of cash advance businesses but we can see that its final version regulates the distance between stores. Also new rules don’t regulate working hours of payday loan shops. Most of them operate 24/7 because they are intended to provide consumers financial assistance at any time.
Cash advance stores provide loans online for bad credit with intended to give customers financial support in difficult situations which may appear between paydays or to fix unexpected financial problems. Old shops can stay where they are but new businesses have to follow new rules.