Committee Regulates Short-Term Loan, Check-Cashing Businesses

Members of the Planning Commission and the University City Department of Community Development are working to limit where pawn shops, check-cashing establishments and short-term loan stores can set up shop.

At Monday's meeting of the Zoning Code Review Committee, the members agreed it wasn't prudent to place too many restrictions on check-cashing establishments in University City.

"I have nothing against them. In fact, I think they need to be there for the people who don't have banking," committee member Paulette Carr said.

Some people depend on check-cashing establishments because they simply do not want to deal with banks to get their cash, said Zach Greatens, a planner with the community development department. Also, the committee agreed the check-cashing places fill a need in the community. The check-cashing stores charge a fee for a transaction, but they are not involved in loaning money at high interest rates the way short-term loan establishments are.

University City currently has two check-cashing establishments. They are both owned by the same company, and are at opposite ends of Olive Boulevard. "We don't need a whole lot of those coming up and down," committee member Nova Felton said.

Even if it wanted to, the city cannot do anything to remove the existing check-cashing places. And if one of the existing check-cashing places moved out, another check-cashing place could move in, Greatens said. But it would have to be check-cashing only. A payday lender, for example, could not move in. "A payday lender could only come in where the existing payday lenders are," Greatens said.

University City has four short-term loan or payday-loan establishments in operation. The facilities have to stay in their current location until they go out of business. They can't expand or enlarge, either.

All four short-term loan facilities are licensed through the State of Missouri. That's one of the reasons they cannot be completely prohibited, Greatens said. "It is a recognized business."

"And I don't want to do anything that is going to haul us into Supreme Court," committee member Paulette Carr said.

The committee also discussed zoning in reference to pawn shops. Currently, there are no pawnshops in University City. "All we're doing is regulating for future placement should they come in," Carr said.

The committee has proposed allowing check-cashing establishments only in the Industrial Commercial District, and check-cashing places have to be located at least 1,000 feet from any existing check-cashing establishment. 

The next step is to present the proposals to the full Plan Commission at its next meeting on May 25.