Commissioner wants to suspend payday loan licenses

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

Commissioner Steven Jackson tabled the proposal.

Resolution # 50 says that payday loan stores offer predatory loan rates that are dangerous for low income people. He suggests that high interest rate loans contribute to poverty.

The proposal also targets pawn shops.

Caddo Parish does not have payday loan stores. However, there are plenty of them within the city limits of Shreveport.

Jackson says his measure would not put any payday loans or pawn shops currently in operation.

He would simply ask Shreveport City Council and the Shreveport-Caddo Metropolitan Planning Board to stop licensing new ones.

Jackson believes that these types of stores tend to saturate areas that do not have traditional banks. He wants to make sure that doesn’t happen.

“We want to seriously consider this effort because we know that payday loan services drain communities’ economic resources and tend to prey on low-income people and the elderly. So we moved that up to Thursday, ”Jackson said after Monday’s working session.

It is not immediately clear whether the city council and the MPC will actually respond to the request if it passes Thursday.

On Monday, some commissioners discussed the possibility of pushing forward a parish ordinance to ban the opening of all commerce.

Some members of the public spoke out in favor of Jackson’s measure during Monday’s working session.

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

Copyright 2019 KSLA. All rights reserved.

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