Iowa City Council to move on payday lending ordinance

BY NATE OTJEN | AUGUST 31, 2012 6:30 AM

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The Iowa City City Council meeting will vote on the second consideration of an ordinance restricting where payday lenders may set up shop.

The ordinance would require payday lending institutions to be at least 1,000 feet away from schools, churches, and daycares, among other places.

Payday lenders allow people to take out short-term loans between paychecks and pay the business back with interest after they receive their next paycheck.

In the previous vote on Aug. 23, the council unanimously approved the first consideration of the ordinance.

Credit unions and banks will not be regulated as delayed deposit services and will not be affected under this ordinance if it were to pass.

Several cities throughout the state, including Des Moines, West Des Moines, Clive, and Ames, have all recently passed ordinances restricting payday lenders.

With the unanimous passing of the first consideration of the ordinance on Aug. 23, the City Council will discuss the issue to further detail in the upcoming meeting.

An ordinance must pass three votes on the issue in order to go into effect.

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