2013-12 AMENDING ZONING ORDINANCE - CONSUMER CREDIT SERVICES AND PAWNBROKER

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�I j Illinois People's Action■510 E.Washington Street,Suite 309■Bloomington,IL 61701*(309) 27-9627 Decatur Chapter■Attn.: Reverend Dr.Michael Hoy■250 W.Decatur Street■Decatur,IL 62522■(21 )423-7783 I TO: Members of the City Planning Commission,Decatur,Illinois FROM: Illinois People's Action DATE: February 5,2013 I Dear Members of the City Planning Commission: We are grateful for the work of Billy Tyus to help improve the zoning ordinance that will�Ssist in providing greater and more stringent restrictions on payday and car title lending institutions. Nonetheless,we find the current proposal inadequate to truly address the problem. We are aware of the deeply detrimental effects of payday and car title lending. In the St*.te of Illinois the rates of interest are allowed up on Pto 400% payday da loans,and there are no current stipulations on title loans(though the average rate of interest is 300%or more). These loans take advantage of the most economically vulnerable of our community. Moreover,the City of Decatur has one of the highest per capita number of payday and car title stores in the State of Illinois, second only to Peoria. Finally,profits generated from the interest and fees of these loans lead to the payday and car title industry exporting$1.7 million dollars annually from the City of Decatur and State of Illinois to those who are benefitting from this industry of greed. i Aware of these detrimental effects,the City Council of Decatur passed a"Resolution Requesting the General Assembly of the State of Illinois to Exact Additional Consumer Protection Legislation Re4arding Payday Loans and Small Consumer Loans"which includes the following language: "Whereas it is the considered opinion of the City Council of the City of Decatur that addi ' nal regulation of payday lending practices is necessary because current permitted lending practices have an unreasoiable adverse effect upon the elderly,the economically disadvantaged,and other citizens of the State of lllinois..."I I It is on the basis of this statement,and the abundant evidence of immorality in paydaycar title lcnding at their current usurious rates that we,the representatives of Illinois People's Action,insist the lusion of two additional stipulations: 1. That payday and car title stores shall not be located on major thoroughfares in the Citnd of Decatur,including Franklin/Water and Main(Hwy. 51),Eldorado(Hwy.36 and 105),Pershing(Hwy. 48), the following streets: Mound Road,Martin Luther King Drive,Oakland Avenue,Fairview Avenue,22"d Street, ain Street,Wood Street, and Jasper Street. 2. That payday and car title stores shall not be located within 500 feet of anything considered residential- neighborhoods,parks,schools,and places of worship. We hope that the Planning Commission will give these stipulations serious consideration ith the zoning ordinance proposal. Sincerely, qchael Hoatur IPA Chapter