Stamps: No New Payday Loan, Check Cashing, Alcohol, Pawn Shops | Jackson Free Press

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Ward 4 Councilor De’Keither Stamps will introduce an ordinance to stop the expansion of payday lenders, check tellers and pawn shops, and liquor stores. Photo by Imani Khayyam.

A Jackson city councilor wants to stop the expansion of payday loan stores, check counters and liquor stores in the capital.

Ward 4 Councilor De’Keither Stamps plans to introduce an ordinance that would impose a moratorium on business licensing on these businesses at the regular Jackson City Council meeting on February 9.

From there, the proposal will likely go to the planning committee. The City’s Planning Department oversees zoning. Stamps, who represents South Jackson on the council, said what he calls the “marginal economy” of people living in or near the poverty line is stifling the city’s economic growth.

“We have to figure out what we’re going to do to change the city’s economy,” Stamps told the Jackson Free Press in an interview.

In the 2015 Assets & Opportunity Scorecard from the Washington, DC-based Corporation for Enterprise Development, a nonprofit think tank that supports policies that help low-income families, Mississippi ranked 51st among states for economic results. The State was No. 48 for the quality of policies that help lift low-income people out of poverty.

The Mississippi law governing payday loan shops originally contained a provision that the law should be re-authorized every few years. In 2013, lawmakers approved a law to remove this so-called sunset provision so that lawmakers do not debate the law on each expiration.

In 2014, Ed Sivak, then director of the Mississippi Economic Policy Center, testified before the Mississippi House Banking Committee, stating, “We need to be honest with ourselves and recognize that Mississippi is in an untenable situation today because we have failed, at several times, to implement meaningful consumer protections at the state level for small loans. Consumer Financial Protection Bureau) to work vigorously to rectify, ”Sivak, now vice president of Hope Enterprise Corp., told the committee.

Charles Lee, director of consumer protection at the Mississippi Center for Justice, says a notorious stretch of Ellis Avenue, where there are more than a dozen payday lenders, is a testament to the success of businesses in Mississippi, where are found the greatest number of payday loans. -lending companies per capita in the country.

“People use what’s closest to them. If it’s the closest financial institution (quote) to where they live, that’s what they’ll use,” Lee said.

Stamps said he was open to partnering with organizations like MCJ and Hope on a financial literacy program.

“We have people who have used check cashing for generations, so we need to teach them about banking,” Stamps said.


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