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City Limits Payday Loan Businesses

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WINDSOR HEIGHTS, Iowa (AP) - Another Iowa city has approved restrictions on payday lending businesses and pawn shops.

Windsor Heights became the seventh Iowa city to pass rules that limit where such businesses can operate.

Critics of the payday loan businesses say they charge exorbitant interest rates to people who can least afford it. These loans are sought by people with problems accessing loans from banks.

Industry advocates say the businesses serve customers who otherwise cannot get loans. Critics say the loans have high interest rates that trap people in a cycle of borrowing.

Des Moines, West Des Moines, Clive, Iowa City, Cedar Rapids and Ames also regulate payday lenders.

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