Chicago Heights Caps Number of Payday Loan Businesses

Anyone hoping to start another in Chicago Heights may have to look elsewhere.

At the Monday meeting all present members voted in favor of capping the number of city-issued consumer installment loan business licenses at six.

"We're limiting it to six because that's how many there are now, and we don't want any more," Corporation Counsel T.J. Somer said, adding that the interest rates at the businesses are far too high. "These places really take advantage of people."

Ward Four Ald. Josh Deabel argued the number should be lower, but Mayor David Gonzalez and Somer said the city could not remove the existing payday loan businesses.

"I don't think anyone wants to see another one of these places popping up, so I'm glad we're doing something about it," Deabel said. "I wish we would have done this sooner, before there were so many. I know some of these places opened up more recently."

Ward One Ald. Walter Mosby noted two newer payday loan businesses on Western Avenue, both of which are former Burger King restaurants. 

Each time a payday loan business closes permanently or leaves the Heights, the council will revisit the issue, hoping to lower the cap again, according to Gonzalez.

"If one of these places goes out of business, we'll do this again and try to lower it to five, then four," Gonzalez said.

Ward Two Ald. Sonia Perez and Ward Six Ald. Vincent Zaranti were not present for the vote.