Chain’s bid to open payday loan operation is rejected

Thursday, Aug. 4, 2005 | 9:29 a.m.

The North Las Vegas City Council, which two weeks ago enacted a six-month moratorium on new payday loan companies, rejected a chain's bid Wednesday for a permit to open a store.

It's the second time this year North Las Vegas has rejected a permit for the payday loan company Cash Box, which sought to open a store at 2696 W. Ann Road. The city rejected another request by Cash Box earlier this year to open a store at the northeast corner of Cheyenne Avenue and Martin Luther King Boulevard.

Cash Box has filed one lawsuit against the city and the company's owner, Chet Cox, has threatened to file a second with the latest denial. Cash Box sought a court injunction to stop Wednesday's council hearing but was unsuccessful.

Councilwoman Shari Buck led the opposition to the store, saying there are too many in the community -- there are 25 -- and called the business undesirable. It's the third payday permit rejected by the council this year.

The payday loan companies have been accused of preying on problem drinkers, gamblers and the poor with high interest rates. Payday officials contend they are providing a valuable service to people who may need cash when their car breaks down or another emergency occurs prior to pay day. They accuse the city of discriminating against the industry.

The moratorium is expected to give the city time to review setting standards for payday loan operations, including looking at distance requirements, establishment size, hours of operation. The city will also study whether to limit the amount of permits issues, hold a lottery for them or even ban new ones.

The council review of Cash Box didn't fall under the moratorium because the company's application was filed prior to the city enacting the moratorium. The permit was approved by the Planning Commission, only to have city staff appeal the case to the council.