Tucson, Arizona, City Council Finalizes Deal to Distribute Payday Loan Companies Around City

Historical archive, first published 2006 — payday-lending laws and rates have changed since. Preserved for the record.

After pondering the issue of whether or not to require a quarter-mile between payday loan stores in the state, the City Council voted unanimously Tuesday to limit where these institutions can do business.

Council members said the restrictions were needed to prevent clustering of lending sites and help protect residents from what some have described as exploitative lending practices that charge clients high interest rates and assess stiff fees and penalties.
The ordinance restricts new payday lending operations, not those already in business.

Gertie Salazar, the district manager for Checkmate, said payday lending provides a vital financial bridge for emergencies when people have nowhere else to go, such as when a family member is hospitalized.

She said her stores provide good jobs and said many customers who use payday loans are well-educated. She said the restrictions will limit competition and drive up prices.