Chattanooga Seeks Control Over Payday Loan Stores

Historical archive, first published 2005 — payday-lending laws and rates have changed since. Preserved for the record.

Chattanooga, TN — The city council is looking into a way to control the rapid growth of payday advance loan shops, pawn shops, title pawn outlets and check cashing stores. Currently, these stores are lining Brainerd Road, Rossville Boulevard and Ringgold Road.

Greg Helms of the Regional Planning Agency told council members that many payday advance loan firms have moved into Chattanooga after being outlawed in Georgia.

The city feels that the stores are destroying property values due to their "garish colors" and "flashy signage."

As evidence, Mr Helms said from 2000-2004, property values went up 23 percent near the stores and 31 percent citywide.

So two of the things city officials are considering are setting distance limits between the quick payday advance stores and setting standards on how they blend into the neighborhood.