A potential ordinance restricting where short term loan operators can open locations in Birmingham, Alabama, has some opponents saying the regulation may not enforce strong enough policies on short term lending
The Birmingham News states that as the ordinance stands, short term lenders would be prohibited from opening a storefront within one mile of another alternative financing company. However, opponents of the potential regulation say that the businesses often provide consumers with options to cover expenses for emergency and necessary purposes. Enforcing where these companies can open locations may not be for a legitimate reason and the source writes that the policy would not help Birmingham residents. The newspaper reported in a separate article that several individuals within the city are asking officials to pass regulations that would establish a permanent ordinance on short term lenders. The current ban of these businesses expires in September, and some want to the law to be passed before then. Supporters of the legislation argue that these short term lending companies use predatory practices to extend and then recover debts from borrowers.