The Springfield City Council voted Monday to impose new regulations on payday lenders whose high interest rates can create a “debt trap” for desperate borrowers after years of debate.
Among the list of features ended up being an agenda to impose $5,000 yearly licensing charges at the mercy of voter approval in August, that will get toward enforcing the town’s rules, assisting individuals in financial obligation and supplying options to short-term loans.
But lawmakers that are republican Jefferson City might have other some ideas.
Doing his thing earlier in the day Monday, Rep. Curtis Trent, R-Springfield, included language up to a banking bill that solicitors, advocates and city leaders state would shield a quantity of payday loan providers from charges focusing on their industry.
The bill passed the home that and cruised through the Senate the next day. Every Greene County lawmaker in attendance voted in favor except House Minority Leader Crystal Quade, D-Springfield. It is now on Gov. Mike Parson’s desk for last approval.
Trent’s language especially states regional governments aren’t permitted to impose costs on “conventional installment loan lenders” if the charges are not necessary of other finance institutions managed by the state, including chartered banking institutions.
