Springfield lawmaker’s add-in may help payday lenders skirt licensing charges, advocates state

Springfield lawmaker’s add-in may help payday lenders skirt licensing charges, advocates state

Saturday

SPRINGFIELD – After many years of debate, the Springfield City Council voted Monday to impose brand brand new laws on payday loan providers whose high rates of interest can cause a « debt trap » for hopeless borrowers.

One of the features was a strategy to impose $5,000 licensing that is annual at the mercy of voter approval in August, that will get toward enforcing the town’s guidelines, helping individuals with debt and supplying alternatives to short-term loans.

But lawmakers that are republican Jefferson City could have other tips.

For action previously Monday, Rep. Curtis Trent, R-Springfield, included language to a banking bill that lawyers, 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 last approval.

Trent’s language particularly states regional governments aren’t permitted to impose charges on « conventional installment loan lenders » if the charges are not necessary of other banking institutions controlled by hawaii, including chartered banking institutions. Read more…