5.7 Lenders per Mile

UPDATE: A SpeedyCash has opened at Manchaca Rd. and Stassney Ln. since my original post.

Today I traversed a 1.4 mile perimeter around my 78745 neighborhood. The route was roughly rectangular and consisted of the four major streets in each cardinal direction from my home. I found five pawn shops, two Ace Cash Express, and one EZMoney. That is 5.7 lenders per mile advancing cash on paychecks, merchandise and vehicles. Three of the eight are publicly traded members of the Cordray Index.

The Austin City Council has passed an ordinance regulating how close together these lenders can be located and their lending practices. Texas cities are not allowed to regulate interest rates. The ordinance was challenged in a suit brought by the lenders' trade association, the Consumer Service Alliance of Texas.

Payday Lenders in Austin, Texas

The Empire Strikes Back

The Cordray Index

The Cordray Index Losers