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.
One of the features ended up being a strategy to impose $5,000 licensing that is annual at the mercy of voter approval in August, that could go toward enforcing the town’s guidelines, helping individuals with debt and supplying options to short-term loans.
But Republican lawmakers in Jefferson City might have other some ideas.
For action previously Monday, Rep. Curtis Trent, R-Springfield, included language to a banking bill that lawyers, 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 benefit except House Minority Leader Crystal Quade, D-Springfield. It’s now on Gov. Mike Parson’s desk for last approval.
Trent’s language especially states neighborhood governments aren’t permitted to impose costs on “conventional installment loan lenders” if the costs are not essential of other finance institutions managed because of their state, including chartered banking institutions.