Des Moines’ City Council has decided this week the impose further restrictions on payday lenders and pawn shops. These restrictions include being prohibited in two of the cities’ business districts. These business would also be restricted from operating in retail shopping areas.

Payday loan operations and pawn shops are also not permitted to operate within 250 feet of a residential area, which was increased from the previous 150 foot buffer.

These new regulation were a result of complaints about their proliferation and impact on close by neighbourhoods, and follows a 180 day moratorium on new stores. These new regulation will directly affect two new stores that Pawn America had planned to open on Merle Hay Rd. and South east 14th Street.

On a positive note, the Des Moines City Council has voted to support the creation of a Bank On program that would provide financial services to low income residents. This type of program is in place in more than 20 other American cities and has the full support of Mayor Frank Cownie. The Bank On program works with existing financial institutions to provide savings and checking accounts for the under-banked.