It doesn’t make sense in these difficult economic times to restrict the availability of credit, but that’s exactly what the city of East Ridge wants to do. Members of the city council are reviewing zoning options to reduce the number of short-term lenders in the area, which would lead to larger economic consequences, if implemented.

As an Advance America district manager and a concerned citizen of East Ridge, I see the demand for short-term credit everyday. Short-term lending companies like mine provide access to credit – in many cases when other financial institutions cannot. An overly restrictive zoning ordinance will take away a valued financial option and will force customers to turn to other forms of borrowing, which may cost more money than the flat fee charged for a payday advance.

In addition to serving as a resource for temporary credit, the industry contributes to the local economy – providing jobs that include health benefits and competitive wages, hiring local vendors, renting storefronts and using other local services.

For the sake of its citizens and sustained economic development, you would think it would be more beneficial for a city to keep their successful businesses open, rather than trying to zone them out of existence. A zoning ordinance will send the wrong signal to the business community – generating fear of being shut down by further regulations.

In addition, local jobs (including my own and my employees’ jobs) will be in jeopardy.

The vast majority of Advance America customers in East Ridge are satisfied with the product we offer and use it responsibly. With such a strong and satisfied customer base and a substantial contribution to the local economy, it is illogical to propose ordinances that would force a much-appreciated service out of the area.

Paul Donnahoe
East Ridge

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The East Ridge City Council shouldn’t be interfering with the personal finances of its constituents.

Council members fail to realize that steering consumers away from loan options like short-term payday loans forces them to resort to less desirable and more expensive alternatives to make ends meet.

A New York Times Magazine article about short-term payday lenders explained that, compared to mainstream banks, they offer easy-to-understand conditions with “no surprises, no hidden fees.” Eliminating these services will deprive the city’s neediest residents of valuable financial tools, ultimately causing them to pay more for their financial services.

Borrowers are best served when they have more choices to pick from, not fewer, and an economic downturn is no time to raise costs for low-income workers.

Sarah Longwell
Center for Consumer Freedom, Director of Communications

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Local check to cash or short term credit manager Paul Donnahoe makes a case for his operation's presence in East Ridge, not Lookout Mountain, Signal Mountain, East Brainerd, Collegedale or Soddy Daisy.

First, why did his type of money lending get run out of the states of Georgia and North Carolina? They were virtually non-existant in East Ridge until that happened.

Your operations collect no sales taxes, so where is the benefit to our city? Yes, you do rent store fronts to stay visible. Our community rejects your type of business just as we reject houses of prostitution, drug operations and gambling. The federal government is passing or has passed legislation banning your type of money operations near military bases. Why?

Your service as you call it forces your customers to keep digging a deeper hole of debt every time they borrow at very high interest rates. You further state that a "vast majority of your customers in East Ridge" are satisfied. That vast majority of your customers don't live in East Ridge. The citizens of East Ridge must resort to zoning ordinances because your lending operations have lobbyists with large sums of money available to our state legislators who turn a deaf ear to our plight. They really don't care as your loaning operations are not in their back yards. We don't desire your money lending operations. We don't want them in East Ridge, just get out of town and take your "satisfied customers" with you.

Chuck Mehan
East Ridge
cbm2006@comcast.net