I’ve been following efforts in the city of Springfield to limit the density of so-called “convenience loan” (payday loans, title loans, etc.) establishments because Peoria is trying to do the same thing here.

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The State Journal-Register reports:

The [Springfield city] council in a 5-4 vote killed the proposal that would have prohibited new payday and title lenders from setting up shop within 1,500 feet of existing ones. […] Aldermen who opposed the measure said they didn’t want to discourage business, especially in a slow economy, nor did they want to establish a precedent.

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“If someone comes next week and says, ‘I want the same thing for fast-food restaurants,’ how do we say ‘no?’” argued Ward 10 Ald. Tim Griffin. […]

Ward 1 Ald. Frank Edwards said he has heard from landlords who didn’t like the idea. “I’ve had business owners approach me and ask, ‘Who do we rent to?’” Edwards said.

Apparently Springfield has the same kind of problem with the establishments as we do here in Peoria. In the same way we have a large concentration of convenience loan places on University street between War Memorial and Forrest Hill, Springfield has a large concentration on their MacArthur Boulevard.

The reaction to the decision in the comments section of the SJ-R’s website is revealing. Here are a couple of comments that caught my eye, pro and con (spelling errors in original quotes):

I hate those payday load places… however, I agree with the results of the cities vote. Its a dark road to go down once you start restricting personal businesses. We dont need that!!

If the payday lenders were forced to be equally distributed throughout the county, they might wind up in such places as Leland Grove or West White Oaks Drive. No, City Council likes them right where they are, clustered tightly around the borders of poorer neighborhoods.

I, of course, also hate convenience loan places because I believe they’re loan sharks that prey on the poor and vulnerable. But the Springfield council’s action and some of the comments have got me wondering if the city’s attempt to regulate their zoning is really the best solution. In other words, I agree with the ends, but I’m not convinced this is the best means.

Maybe it would be better to work on getting state legislation passed that would regulate these loan places, the same way banks and credit unions are regulated.

What do you think is the best solution to the problem?