I think the city should provide fundamental personal finance advice close to these businesses sort of like the blood donation mobile vehicle. Also regularly at branch libraries. And I think the businesses should have to advertise these prominently in their front window. Can the city require that?

Most of the growth in South Knoxville has come from the residential growth in and around Seymour which is predominately in Blount and Sevier County (the schools are in Sevier County). Pavlis can wish all he wants about what South Knoxville ought to be, piss in one hand wish in the other and see which fills up first.

The absence of any semblance of a local for profit economy in South Knoxville lends itself to these pay day lenders popping up from time to time, but rather than try and address the real problem, zone them out of business or restrict their signage to where they are invisible? Hospital is gone, rock pile is there, the $9 million for Regal promises new jobs, but we know how that will turn out and there won't be any measurable impact from the city's $9 million, it should look good on the river, but that is how the city rolls, form over substance, how it looks over how it is.

Good for Nick Pavlis.

Driving down Chapman Highway between downtown and Young High Pike you'd think payday lending and title loans are the primary industries driving Knoxville's economy.

But these predatory lenders go where there is prey.

We need to look longer term at improving economic opportunity in the community. That would result in less demand for their "services."

The South Waterfront and other initiatives are a good start. We hope the rising tide floats all boats.

They're actually starting to move that rubble. And in 3-4 years when all these projects get finished, downtown will hardly be recognizable. It'll all be very worth it.

We need to be mindful that in the past before the payday lenders sprang up, financial regulations were so restrictive that legit businesses couldn't serve these people.

Since they couldn't get legal loans, people went to loan sharks. The number of people using these lead to leaders realizing that as much as the terms stink, it was better to allow this activity to occur legally where it could be monitored rather than the black market. At least pay day lenders don't break windows and legs to get their money.

Loan sharks came about in the 19th century after a crack down on pay day lending. I'm sure those folks would love to see Knoxville and other cities kill off the pay day lenders to they can swoop in.

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modern stuff:
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from Consumer Financial Protection Bureau …

The second category consists of some of the many states that prohibit roll-overs but do not prevent lenders from making a loan to a borrower on the same day that a prior loan is repaid. The states in this category are California, Iowa, Kentucky, Michigan, Mississippi, Nebraska, New Mexico, South Carolina, and Tennessee.

CFPB Office of Research

PAYDAY LOANS AND PREPAID CARDS
We’re researching and considering whether rulemaking is warranted in the areas of payday and deposit advance products, as well as consumer overdraft products. We held a field hearing in March 2014 in Nashville, Tennessee, and also released a report that analyzed payday lending and found that four out of five payday loans are rolled over or renewed within 14 days. We’re also expecting to build on an Advance Notice of Proposed Rulemaking that we published in 2012 concerning prepaid cards by issuing a proposed rule to strengthen federal consumer protections for these products. We’ve been testing potential disclosures that we may propose to be used on the packaging of prepaid cards.

CFPB in Nashville on Pay Day Loans

from Consumerist …

44 states have non-banking lending statutes that allow open-end credit, and many of those do not cap interest rates or have ambiguous limits, NCLC reports.

For example, Tennessee recently enacted an open-end credit law that purports to limit interest to 24%, but allows a daily charge that brings the full APR up to 279%.

According to NCLC, provisions like the one in Tennessee give lenders incentive to structure loans as open-end credit in order to skirt rate caps.

For a $2,000 cash advance, 11 states cap the full APR at 36% or less, three states cap it between 39% and 42%, and Tennessee caps it at 279%.

Most State Laws Can’t Protect Borrowers From Predatory Installment Loans, Open-End Lines Of Credit

Tennessee banks are no different than payday lenders. Payday by debit card became big business at truck stops and now it has expanded into many low paying jobs. With banks charging withdrawal, overdraft, and checking balance fees, too many low income workers are making below minimum wage. Federal labor laws prohibit fees on wages, but Tennessee does not investigate or enforce the law, saying it's the employees responsibility to address it in court.

Some states prohibit employers from requiring direct deposit, unless employees can withdraw their pay without fees. In California, employers must ensure employees can cash or withdraw their pay within five miles of their work place. Many truck drivers must use banks that have no physical locations to withdraw pay and ATMs are only located at truck stops. The fees are higher and withdrawals limits are lower. The major ATM bank at truck stops is located in Memphis.

TN Legislature wants to pass law making the Bible the Official Book:
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Exodus:
“If you lend money to any of my people with you who is poor, you shall not be like a moneylender to him, and you shall not exact interest from him."

I like Ezikiel better, tho:
"Lends at interest, and takes profit; shall he then live? He shall not live. He has done all these abominations; he shall surely die; his blood shall be upon himself."

Leviticus, which all the wingnuts love to quote:
"You shall not lend him your money at interest".

from Pew Center on the States ..

1. Who Uses Payday Loans?

Twelve million American adults use payday loans annually. On average, a borrower takes out eight loans of $375 each per year and spends $520 on interest.

Pew's survey found 5.5 percent of adults nationwide have used a payday loan in the past five years, with three-quarters of borrowers using storefront lenders and almost one-quarter borrowing online. State regulatory data show that borrowers take out eight payday loans a year, spending about $520 on interest with an average loan size of $375. Overall, 12 million Americans used a storefront or online payday loan in 2010, the most recent year for which substantial data are available.

Most payday loan borrowers are white, female, and are 25 to 44 years old. However, after controlling for other characteristics, there are five groups that have higher odds of having used a payday loan: those without a four-year college degree; home renters; African Americans; those earning below $40,000 annually; and those who are separated or divorced. It is notable that, while lower income is associated with a higher likelihood of payday loan usage, other factors can be more predictive of payday borrowing than income. For example, low-income homeowners are less prone to usage than higher-income renters: 8 percent of renters earning $40,000 to $100,000 have used payday loans, compared with 6 percent of homeowners earning $15,000 up to $40,000.

Payday Lending in America: Who Borrows, Where They Borrow, and Why