SPRINGFIELD, Mo. – A short-term lending ordinance was passed after it went through several versions and filed for years.
Susan Schmalzbauer of Faith Voices of Southwest Missouri calls this an important first step.
“Part of this ordinance therefore requires lenders to post in language that allows people to understand what the true cost of the loan is,” Schmalzbauer said. “You know it’s about exploiting people, exploiting people who are leaning against the wall.”
The ordinance will also require lenders to provide information on other places to get loans, but it is questionable whether that will be enough to put an end to so-called predatory spending.
“I want to say that I have no illusions that our vote tonight will have a significant impact on the payday loan industry,” said Andrew Lear, Springfield City Councilor. “We know that any real reform will require action at the state level. “
KOLR10 contacted several payday loan companies, but none answered our calls.
Megan Short, who spoke out against the ordinance in city council, said she did not support short-term loans, but informed city council last year that it was a slippery slope if we demand costs for a single industry.
“People aren’t always happy with every industry on a day-to-day basis,” Short said. “The people who use them. They just need to be able to get the money at that point. Whether they don’t have the best credit or just can’t wait for a loan to be processed. There is a void right now and that is why people are using them. We cannot stop this by simply charging a fee. “
Faith Voices of southwest Missouri said she was continuing the fight by calling for a 36% interest cap on payday loans, similar to regulations on credit card companies.
You will be able to say yes or no to the order on August 4th.