Montgomery City Council remains unsure about pay day loan - WSFA.com Montgomery Alabama news.

Montgomery City Council remains unsure about pay day loan crackdown

Posted: Updated: April 11, 2014 09:31 PM
MONTGOMERY, AL (WSFA) -

Montgomery city officials say there are 87 pay day loans in the city of Montgomery. They're just about one very corner.

Officials are trying to figure out a way to crack down on these companies and establish guidelines for their locations but agreeing on the language of the ordinance has been challenging.

It's a discussion that's been going on since October, and still no decision on how to crack down on the payday loan and title pawn companies in the city of Montgomery.

"If you are going to write a law, I think you need to get it right, so however long it takes," said Councilman Richard Bollinger.

Bollinger says there are more questions than answers right now.

"Questions that were brought up that no one has thought about at this time, so we need to investigate that," Bollinger said.

The moratorium has been ineffective, now the ordinance that has been in a special ad-hoc committee for months.

Councilman C.C. Calhoun says he's concerned about unintended consequences of the passage of the ordinance as it is written now. He fears in some instances, small banks may fall under the same umbrella as these pay day loans companies.

"The small banks, like Rice Banking, our lawyers couldn't tell us if they were excluded or not so we didn't want to pass something and then have to come back and undo it," Calhoun said.

The vote on this ordinance has been tabled until the May 6th City Council meeting.

Another issue tabled tonight was the vote on if off-duty police officers can be hired as security guards, or for training in the parking lot of night clubs and lounges. That vote is expected on April 15th in the Public Safety Committee Meeting.

Copyright 2014 WSFA 12 News.  All rights reserved

Powered by WorldNow