Pignanelli says the industry does not specifically target the military. He said it also goes to extra lengths to help any military members who have problems with loans. "For example, one of the chains here forgave loans, principal and interest, to anyone who was sent to Iraq," he said.

Border effect

Morning News analysis found that some cities do not have as many payday lenders as would be expected from their poverty and Hispanic levels because they have legally restricted the numbers of payday lenders they allow. But enterprising lenders tend to set up shop just across the border.

"We call it the border effect," Hilton said.

West Valley City was apparently the first to adopt an ordinance locally. Its version allows only one payday lender for every 10,000 residents. It already had far more than that number but allowed existing stores to continue. But the ordinance prevents construction of more, or replacement of any that close.

"They were just popping up everywhere," said City Council member Margaret Peterson, mother of law professor Peterson.

Margaret Peterson says she pushed an ordinance to restrict numbers in part because "of the victimization of people seen by my son. . . . I also have a friend and a co-worker who were also caught up in it."

Also, she says West Valley merchants requested help saying the heavy influx of such stores gave some areas a run-down feeling that they worried chased away desirable business.

When West Valley City adopted its ordinance, Hilton says new lenders started popping up just over the border in Taylorsville, often literally across the street from West Valley City.

Taylorsville Mayor Janice Auger says its business owners soon noticed a big influx and called city officials because they were worried, too.

As Hilton said about worries expressed in many cities, "Whenever you get payday lenders, they tend to attract pawnshops, dollar shops, thrift stores and lingerie stores. Once you have them in a certain area, it's hard to get a bookstore, a pet store or a Chinese restaurant."

Auger says her city also found payday lenders attracted a high number of police calls, costing the city extra money. She says many were in response to calls about passing bad checks, and some were for drug deals made by borrowers who had just obtained loans.

Also, she said, "Taking off my mayor's hat, I was a public accountant for 35 years. I am very offended by their tactics and what it costs people."

Taylorsville adopted an ordinance similar to West Valley City. Since then, some new payday loan stores have popped up literally across the street from both cities in the neighboring unincorporated community of Kearns.