Title and payday lenders banned in revitalization areas
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| TitleMax recently moved into the building on Little River Turnpike formerly occupied by Jerry’s Subs. |
The Fairfax County Board of Supervisors on Nov. 17 approved a Zoning Ordinance amendment to restrict title
and payday lenders. These
businesses, referred to as “alternative lending institutions,” prey on the
poor, charging interest rates as high as 300 percent.
and payday lenders. These
businesses, referred to as “alternative lending institutions,” prey on the
poor, charging interest rates as high as 300 percent.
They would be
prohibited in commercial revitalization
districts (CRDs) and commercial revitalization area (CRAs), which tend to be
older areas where the county is trying to encourage redevelopment. Parts of
Annandale, Bailey’s Crossroads, and Seven Corners are CRDs.
prohibited in commercial revitalization
districts (CRDs) and commercial revitalization area (CRAs), which tend to be
older areas where the county is trying to encourage redevelopment. Parts of
Annandale, Bailey’s Crossroads, and Seven Corners are CRDs.
Currently these
institutions are included within the definition of financial institutions in
the zoning ordinance and are permitted in all commercially and industrially
zoned areas.
The amendment
would establish a new definition for these institutions. They would be
permitted in certain areas zoned for regional retail (C-7) and highway
commercial (C-8) uses in non CRD or CRA areas, only under these conditions:
would establish a new definition for these institutions. They would be
permitted in certain areas zoned for regional retail (C-7) and highway
commercial (C-8) uses in non CRD or CRA areas, only under these conditions:
- They would have
to be located within a shopping center, as opposed to be being a stand-alone building. - They could not
be located adjacent to or across a public right-of-way from “specifically
identified sensitive land uses,” such as a public use, a child care center, or
a place of worship. - They could only
be open from 8 a.m. to 6 p.m. - The storage or
sale of automobiles would be prohibited on these sites.
The amendment
applies only to new title and payday lenders; existing businesses would not be
affected.
applies only to new title and payday lenders; existing businesses would not be
affected.
Data from
the Virginia State Corporation Commission (SCC) shows the number of title and payday lenders
operating in Fairfax County increased from 16 in January 2012 to 31 in August
2015.
the Virginia State Corporation Commission (SCC) shows the number of title and payday lenders
operating in Fairfax County increased from 16 in January 2012 to 31 in August
2015.
There
are 10 of these businesses in Mason District, including three Title Max stores,
two Advance America, two Loan Max, two Fast Auto Loans and one Ace Cash Express
store. Those stores attract many borrowers from Maryland the District of Columbia, which have have stricter laws on alternative lending.
are 10 of these businesses in Mason District, including three Title Max stores,
two Advance America, two Loan Max, two Fast Auto Loans and one Ace Cash Express
store. Those stores attract many borrowers from Maryland the District of Columbia, which have have stricter laws on alternative lending.
These
businesses tend to cluster disproportionately in low to moderate-income areas,
around concentrations of lower-wage workers, and near military bases, the
county staff report states. They also tend to cluster in the same areas, such
as along Arlington Boulevard, Little Turnpike, and Richmond Highway.
businesses tend to cluster disproportionately in low to moderate-income areas,
around concentrations of lower-wage workers, and near military bases, the
county staff report states. They also tend to cluster in the same areas, such
as along Arlington Boulevard, Little Turnpike, and Richmond Highway.
Predatory
lenders target poor and desperate people, who often don’t understand what they
are signing and end up having their vehicles repossessed.
lenders target poor and desperate people, who often don’t understand what they
are signing and end up having their vehicles repossessed.
The staff report sites a study
by California State University, Northridge, that says a concentration of “fringe
banking institutions,” such as payday lenders, “may constitute a visible sign of
neighborhood decline and signal to potential troublemakers that informal social
control is weak at best.”
by California State University, Northridge, that says a concentration of “fringe
banking institutions,” such as payday lenders, “may constitute a visible sign of
neighborhood decline and signal to potential troublemakers that informal social
control is weak at best.”
2 responses to “Title and payday lenders banned in revitalization areas”
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“may constitute a visible sign of neighborhood decline and signal to potential troublemakers that informal social control is weak at best.”
We don't want that do we now.
Looks like a freaking TitleMax palace. Nothing less than a government advocated business for extortion. These paranoias need to go and our local government needs to show some smarts and grit and get rid of these bottom feeders.
And they do indeed bring the neighborhoods down…..get them the hell out of here.