City
governments will continue to impose heavy restrictions on
non-traditional financial services companies until challenged in
court. So far, no company appears willing to make that leap.
The American Fork, Utah City
Council voted to limit payday lenders to one per 10,000
population. The Council reportedly cited "morality" as the
driving force behind the bizarre restriction.
According to the most recent census information, American Fork
has a population of 25,000. The new ordinance would limit to two
the number of allowed payday lending and check cashing locations
in the city. This will be great news for the two locations that
would have a government sponsored monopoly on the small market.
City governments are becoming increasingly bold in their
attempts to impose heavy restrictions on non-traditional
financial services companies. This trend will likely intensify
until challenged in court. So far, no company appears willing to
make that leap.
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City
governments will continue to impose heavy restrictions on
non-traditional financial services companies until challenged in
court. So far, no company appears willing to make that leap.