Springfield has one fewer payday loan and title store today than it did nearly two years ago, when aldermen passed rules limiting where the businesses could locate.
Data from Springfield’s planning and zoning department show that three payday loan companies have closed since 2008. Another is to be torn down to make way for a Hy-Vee grocery store on MacArthur Boulevard.
However, two others have opened in Springfield — a Check into Cash along Wabash Avenue (relocated from another spot on Wabash) and an Advance America on Clear Lake Avenue.
In all, the capital city is home to 21 installment loan outlets. Six are along MacArthur, according to information from the city.
In January 2009, the Springfield City Council voted to require new payday, title and other short-term loan stores to be at least 1,500 feet apart “front door to front door.” Existing stores are exempt unless they move from their current locations.
Officials have mixed opinions on whether the new rules have made a difference.
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Few complaints
The issue was controversial, with the ordinance being defeated by aldermen months before it finally passed. Opponents were concerned that a restriction would discourage growth and set a bad precedent by limiting a specific type of businesses.
Joe Gooden, the city’s zoning administrator, said after the rules passed, his office received a number of calls asking where the stores could be located. But these days, he said, the office gets very few calls about the issue.
The zoning department staff does not recall any complaints or violations in the past two years, Gooden said.
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Public protection
Ward 7 Ald. Joe McMenamin said it’s difficult to measure the effectiveness of such ordinances, since many factors influence where a business locates.
“There are better strategies for the MacArthur corridor to combat payday loan stores,” he said. “These include promoting a diverse and successful retail environment with neighborhood prosperity. Bringing in the new Hy-Vee grocery store and establishing the MacArthur TIF (tax increment financing district) will lead in that direction.”
McMenamin also said better state and national laws are needed to regulate payday and title loan companies that charge “exorbitant interest rate and fees.”
“The public needs reasonable protection. We cannot provide that protection alone at the local level,” he said. “The problem goes beyond our local boundaries. The state and national legislatures need to act.”
Joe McMenamin for Ward 7 