From Deseret News archives:
'Payday loan' store growth cools
The number of such lenders grew only 4.7 percent in the past two years, from 427 to 447 stores, according to the Utah Division of Financial Institutions.
That is much slower growth than in recent decades. The first payday lender appeared in Utah in 1984. Their number had grown to 17 stores in the Salt Lake area by 1994. Then they exploded to 427 registered statewide in 2005.
The current total of 447 is still more than the number of 7-Elevens, McDonald's, Burger Kings and Wendy's in Utah combined.
The industry and its critics disagree whether slower growth comes because it is maturing and reaching a saturation point, or if restrictions on them by a growing number of cities are also slowing growth.
"We are just seeing a maturing in the industry. People who watch the industry said that it would be maturing and reaching a plateau. That is what is happening," said Cort Walker, spokesman for the payday loan industry's Utah Consumer Lending Association.
A critic of the industry, Linda Hilton, director of the Coalition of Religious Communities, said another reason for slower growth may be that more cities have restricted how many payday loan stores they will allow, often preventing any new stores in their boundaries.
"There are definitely fewer places, at least in Salt Lake County, where they can open and do business, and that may be a factor," she said. Cities that have at least some restrictions on new payday loan stores include Draper, Midvale, Orem, Sandy, South Salt Lake, South Jordan, Taylorsville, West Jordan and West Valley City.
Leaders in Salt Lake City and Salt Lake County also have been discussing restrictions.
Walker dismisses city restrictions as a reason for slowed growth. "It just hampers a consumer's ability to find the most convenient location," he said. "What should be disconcerting is that the fewer the lenders that are present, the fewer the choices consumers have. As competition is limited, that is bad for consumers."
Recent comments
How many times are we going to hear Lee Davidson harp on this issue?...
Robert | Sept. 30, 2007 at 12:33 a.m.
- FBI awards Salt Lake Gang project 6:27 p.m.
- Elder Royden Glade Derrick dies 6:26 p.m.
- Dr.: Mitchell seeks signs from God 6:18 p.m.
- Storm pounds Utah for 2nd day 6:18 p.m.
- Rare Scouting document donated 6:16 p.m.
- Vaccine available to all in Utah Co. 6:16 p.m.
- Farmington Jr. principal dies 6:12 p.m.
- Charter school laws among best 6:09 p.m.
- UT Co. to bond for convention center 6:08 p.m.
- Victim's mom wants teen in adult court 6:05 p.m.
- BYU football: Bronco weighs in on Hall
- Yet again, we learn BCS is a big joke
- Storm pounds Utah for 2nd day
- Williams' late jumper tops Spurs
- Cougars in better mood about bowl
- Andersen apologizes for Jordan hoax
- Ranking the bowl games
- $2M error could mean layoffs
- Witness: Mitchell stalked victims
- Dr.: Mitchell seeks signs from God
- Y. profs: Beck not all-knowing
276 - Letters: Global warming a lie
210 - TCU to play Boise in Fiesta Bowl
203 - BYU football: Bronco weighs in on Hall
155 - Cougars going back to Vegas
147 - Utah/BYU rivalry can be more civil
141 - George lost in rivalry hatefest
119 - Ed Smart 'appalled' at testimony
101 - Harpring's NBA career is over
99 - Andersen apologizes for Jordan hoax
98
Pittsburgh Post-Gazette writer Joyce Gannon offers the following advice...
Mr. Anderson was not alone in this hoax... I understand that Bryan has fessed...
That is so dumb! I think I will listen to 98% of all scientists and NOT the...
I think it is sad and pathetic that any team would play worse and be less...
What were the Flash thinking? Do they not teach business ethics at BYU? I...
This is one of the worst and I mean worst movies I have ever seen. It is so...
What a terrible stunt.I say don`t buy tickets to the Flash.
I think this article is very important because many people during the winter...
Don't you mean 1000 billion dollars ago. The numbers are so astronomical...
So, what will they have on the other side of the beer garden? Hot chocolate...
"Except ye become as a little child..." Would that we could all become more...


