David Tate is concerned about the proliferation of moneylending businesses in the city - especially the downtown.

Tate, who is running for city council, said a number of these establishments are located in the city, including several within a short distance of each other.

"These people prey on lower-income people, creating a vicious cycle these people cannot get out of," he said.

Tate belongs to ACORN Canada - the Association of Community Organizations for Reform Now.

He said the group is concerned about the number and proximity of these businesses.

He'd like the city to consider amending its zoning bylaws to restrict the number of theses businesses and require a certain distance between locations."They do bring the wrong element to the city," he said.

According to Tate, the provincial government has taken action against the "rollover loans" and is considering legislation to limit interest rates that these businesses can charge.

Tate said Acorn has been working with financial institutions to develop alternative services to the "payday loans" that charge large interest rates. Payday loans are short-term loans intended to cover a person until payday.

Mayor Wayne Wright noted that three banks will be moving into the downtown and could consider services to assist people with their financial needs.

ACORN has a goal of representing low- and moderate-income communities on issues of social an economic justice.

source: http://www.canada.com/vancouversun/news