Predatory lending rates: Commissioner wants to halt payday loan permits

Caddo commissioner wants to put a stop to payday loans

SHREVEPORT, La. (KSLA) - A Caddo commissioner wants the city of Shreveport to temporarily suspend all permits to new payday loan shops and pawn shops.

Commissioner Steven Jackson filed the proposal.

Resolution No. 50 says payday loan shops offer predatory lending rates that are dangerous to lower-income people. It suggests that high-interest loans contribute to poverty.

Applications available for CBD permits in Louisiana

The proposal also takes aim at pawn shops.

Caddo Parish has no payday loan shops. However, there are many within Shreveport’s city limits.

Jackson says his measure would not put any payday loan or pawn shops currently operating out of business.

It would just ask the Shreveport City Council and the Shreveport-Caddo Metropolitan Planning Commission to stop giving permits to any new ones.

Jackson feels these type of shops tend to saturate areas that don’t have traditional banks. He wants to ensure that doesn’t happen.

“We want to seriously consider this effort because we know that payday lending services suck the economic resources out of communities, and they tend to prey on low-income and elderly. So we moved that forward to Thursday," Jackson said following Monday’s work session.

There’s no immediate word on whether the City Council and MPC will actually take up the request if this passes Thursday.

Monday, some commissioners discussed the possibility of bringing a parish ordinance forward looking at banning any shops from opening.

Some members of the public spoke in support of Jackson’s measure during Monday’s work session.

The Caddo Commission meets again Thursday at 3:30 p.m. to vote.

Copyright 2019 KSLA. All rights reserved.