City council strongly endorsed putting limits on payday loan shops because they trap low-income Calgarians in debt cycles, and next spring may limit where they are placed and hike their business licence fees.

City lawyers, planning officials and business licence officials will let council know by March how far they can go to crack down on high-interest, short-term lenders like Cash Store and Money Mart, whose interest rates and other operations are regulated by other government levels.

The city could place limits on the loan shops like it does to set distances between liquor stores, and perhaps keep them away from liquor stores, Coun. Brian Pincott said.

Mayor Naheed Nenshi said that while major banks may not offer short-stint loans to residents, there could be not-for-profit agencies or micro-lenders who step in. He’s urged ATB Financial and credit unions to do more for low-income residents, he told council.

The motion passed 11-2, with only Sean Chu and Jim Stevenson opposed.

“Is it really our business to tell people how to live their life? How to spend their money?” Chu asked.

The mayor said council does already limit where liquor stores, daycares, strip clubs and secondary suites go.

“That’s our job. That’s our regulatory role,” Nenshi said.