Anniston extends moratorium on short term loan businesses

The Anniston City Council voted Monday to  extend its ban on the opening of new short-term loan businesses in the city by three months. City officials say they want more time to finalize proposed restrictions on such businesses, which they say hurt low-income residents and the economy.
The moratorium continues a six-month ban that began in February and prohibits any new payday lenders, check cashing, title loan, car title loan or any similar type of short-term loan business from opening during that period.
There are about 15 such businesses currently in the city limits, most of which are clustered along Quintard Avenue.
City Manager Brian Johnson said he believes he can have an ordinance with new regulations ready for the council to approve in two weeks at the earliest.
Anniston's proposed regulations include limiting how many new short-term loan businesses can open in the city based on population and location. The regulations are expected to curb the growth of such businesses and, in the long term, shrink the number of them in the city overall.
In Alabama, payday lenders are allowed to charge 400 percent annual interest rates on their loans, which equates to about $17.50 per $100 loaned.