Community moratoriums are a proven tactic used by industry adversaries when they are unable to eliminate the industry in the state legislature.  They move the battle to the local communities -- one community at a time.  Click here to see how it is done.  After a few community successes they then go the state legislature and say, "See, we told you these businesses were predatory.  Many communities have already closed them down.  You need to do the same for the entire state -- now ."  It has worked in state after state and if the largest city in Alabama takes action it will be of note. (collapse text)

The moratorium in its present form essentially freezes the number of storefronts in the city.  On the surface that may not seem threatening but what happens if you need to relocate and find that you can not do so or if your building is destroyed and you are unable to rebuild?  Worse yet, just how responsive will your landlord be when they know you are now "locked" in?  What happens to your rent and how responsive will they be?  And, those are just the immediate effects.  Everyone expects the plan in its current form to change.  But again, the major impact, will be long term.  That is, the consequences throughout the state and in other communities that will surely follow suite after the largest city in the state has taken this action.  This has to be stopped now not when it is too big to stop. (collapse text)

Borrow Smart and other trade groups, which include the CFSA, Modern Financial Services of Alabama and Title Pawn Council of Alabama along with many individual companies (members and non-members) with a presence in the city and state are stepping up.  These are people and companies who know the seriousness of this threat and also know the benefits of working together to face this serious challenge.  The fight is taking place on several fronts, the least of which is in the press and in the media.

We need your help.  If you are not a member of Borrow Smart (Council For Fair Lending) you can join us immediately and help offset the cost of fighting this battle.  Simply click here and follow the instructions.  Again, we need your help now.  Please join with us in this fight.  Additionally, we will be in contact with all operators in the city of Birmingham for their direct help in attending hearings and other steps we can all take as a group to ward off this attack. (collapse text)

Borrow Smart is coordinating the effort and speaking for our members and the industry both to the city council and the press.  Our story is simple, our members stand for the protection of customer's rights through a Code of Fair Lending and that we are not in any way predatory as they allege.  To the contrary, we serve a need in the community that our customers depend on.  And, most often a short-term loan is the least expensive alternative for our customers when compared to other choices (NSF fees, late credit card, utility frees, etc).  We firmly believe it is our obligation to stand up for those customers who depend on us and to stand up for ourselves.  We have made it a point as we meet with individual council members to be sure they know who our members are and that it is our members' goal to work with the council for a resolution.  That resolution does not include a moratorium.  As additional information, here is a list of payday lenders in the city and here is a list of pawn lenders in the city.  Both lists show our members.  You can also visit our web site here and search by city (Birmingham) for a list. (collapse text)