Local lawmaker’s add-in will help payday loan providers skirt town certification costs, advocates state

Local lawmaker’s add-in will help payday loan providers skirt town certification costs, advocates state

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 had been an idea to impose $5,000 licensing that is annual susceptible to voter approval in August, that will go toward enforcing the town’s guidelines, assisting individuals with debt and supplying options to short-term loans.

But Republican lawmakers in Jefferson City might have other tips.

For action earlier in the day Monday, Rep. Curtis Trent, R-Springfield, added language up to a banking bill that solicitors, advocates and town leaders state would shield a wide range of payday loan providers from charges focusing on their industry.

The balance passed the home that time and cruised through the Senate the second. Every Greene County lawmaker in attendance voted in benefit except House Minority Leader Crystal Quade, D-Springfield. It is now on Gov. Mike Parson’s desk for final approval.

Trent’s language particularly claims neighborhood governments aren’t permitted to impose costs on “conventional installment loan lenders” if the charges are not essential of other finance institutions controlled because of the state, including chartered banking institutions.

Curtis Trent (picture: file picture)

Trent along with other Republican lawmakers said which had nothing in connection with payday lenders, arguing that “conventional installment loan companies” are very different. (more…)