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Waterloo Councilman Cracks Down on Payday Lenders

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WATERLOO, Iowa (AP) - Pat Morrissey campaigned for a Waterloo City Council seat last fall on a platform of cracking down on payday lenders. Now, the Ward 3 councilman is following through.

The Waterloo-Cedar Falls Courier reports that just two months into his first term, Morrissey is championing changes in the city zoning ordinance to limit where such businesses can be established.

Payday lenders offer short-term loans with high interest rates. Morrissey and other critics say such loan businesses take advantage of lower-income residents, who get trapped in an endless cycle of high-interest debt.

Morrissey's proposed ordinance would not allow additional payday lenders or pawn shops in downtown or shopping center districts, or within 600 feet of each other, liquor stores, bars, schools, hospitals and a list of other "protected" places.

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