In this 2019 file photo, protesters with Faith Voices and also the the indegent’s Campaign rally away from historic courthouse in Springfield. On Monday, City Council authorized new lending that is payday. (Picture: Nathan Papes/News-Leader)
After a lot more than two years of debate and lobbying by advocates whom state pay day loans cause already-poor individuals to be stuck in a “debt trap,” Springfield City Council took action Monday evening.
Council voted unanimously to place more requirements on payday and car title loan providers, including a $5,000 annual licensing cost that will be needing approval from voters in August.
Following a tips associated with Finance and management Committee, council users approved the ordinance, that is like the St. Louis ordinance managing lending that is short-term. Kansas City has a similar ordinance but charges $1,000 per storefront.
The certification registration charge is intended to produce lenders that are sure with city needs, offer options to short-term loans, assist individuals get free from the debt trap and teach the city concerning the problem.