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Resident warns council about predatory lending at new 'Dollar Loan Center' storefront
Summary
A resident urged Kenosha aldermen to use zoning and code tools to limit high-cost loan storefronts near schools, saying a new location uses Wis. Stat. section 138.09 to issue open-ended loans with annual rates that can exceed 400%.
David McClain, a Kenosha resident, told the Common Council that a new Dollar Loan Center at 2047 22nd Avenue (opened June 24) is using a statutory loophole under Wisconsin statute section 138.09 to issue open-ended signature loans that he said can carry annual percentage rates above 400%.
McClain described the product as a "financial treadmill" where daily compounding interest can leave borrowers owing more after a year than when they started. He said the storefront sits in a high-density family corridor next to a daycare and across from an elementary school and urged the council to consider emergency zoning restrictions to keep high-interest lenders away from schools and daycares.
Why it matters: McClain argued the council has zoning, ordinance and code-enforcement tools to protect neighborhoods even when state law governs lending rates. He asked the council to explore emergency zoning restrictions and to work with residents to draft local protections.
What council did: The council heard the comment as part of the public-comment period; no zoning motion or vote addressing the specific storefront was taken at this meeting. Council members were later recorded approving multiple committee recommendations during the session unrelated to the storefront.
Next steps: McClain asked for council engagement and potential ordinance or zoning responses; no formal direction was recorded in the meeting minutes.
