HELENA, AL (WBRC) - The city of Helena has put a six month hold on pay day loan businesses coming to town.
The Helena City Council passed a six month moratorium on the lending companies on the companies applying to come to the city.
"We don't want a pay day loan on every corner," Helena Mayor Mark Hall said.
The city's zoning board will be charged with developing regulations and restrictions on pay day loan businesses.
"Just being proactive. We know they were some difficulties in surrounding municipalities. They were encountering and they were discussing. Se we wanted to look at our regulations to see where those businesses fit," Hall said.
The Birmingham City Council extended a ban on new pay day loans to develop regulations to prevent a cluster of lending companies in one area. Council members and state lawmakers have accused pay day loans companies of preying on the poor.
Some of the businesses FOX6 News spoke with in Old Town Helena agreed with the moratorium and restrictions. Mayor Hall know where he doesn't want to see pay day loan operations.
"You wouldn't want it in front of your neighborhood. You wouldn't want it in close proximity to schools or day care or that type of thing," Hall said.
Mayor Hall said Helena can't ban pay day loan companies outright but they will have a big say about how many and where these companies operate in Helena. The moratorium could also be extended.
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