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SPRINGFIELD – After several years of debate, the Springfield City Council voted Monday to impose brand brand new regulations on payday lenders whose high rates of interest can cause a “debt trap” for hopeless borrowers.
One of the features ended up being an agenda to impose $5,000 licensing that is annual susceptible to voter approval in August, that could get toward enforcing the town’s guidelines, assisting individuals with debt and supplying options to short-term loans.
But Republican lawmakers in Jefferson City could have other some ideas.
For action early in the day Monday, Rep. Curtis Trent, R-Springfield, included language up to a banking bill that lawyers, advocates and town leaders state would shield a quantity of payday loan providers from costs focusing on their industry.
The balance passed the home that time and cruised through the Senate the following. 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 particularly states neighborhood governments are not permitted to impose fees on “traditional installment loan lenders” if the charges are not necessary of other banking institutions controlled by their state, including chartered banking institutions.
Trent as well as other Republican lawmakers stated which had nothing in connection with payday lenders, arguing that “conventional installment loan companies” will vary.
” there is nothing to avoid the town from placing an ordinance on the lenders that are payday” Trent stated in an meeting Thursday. “It had not been the intent to prevent the town’s ordinance and I also do not expect it should be the end result.”
But John Miller, a resigned Kansas City attorney who advocated for the ordinance that is similar the suburb of Liberty, remarked that many payday loan providers may also be installment loan providers. Continue reading “Springfield lawmaker’s add-in may help payday lenders skirt licensing charges, advocates say”