Council Considering Rules on Payday Loans

THE RISK OF SHOWERS AND FEW THUNDERSTORMS WILL CONTINUE THROUGH TUESDAY ALONG AND NORTH OF THE FRONT. THE FRONT WILL CONTINUE TO SLOWLY EDGE SOUTH DOWN TO ABOUT THE STATE LINE DURING THE THROUGH WEDNESDAY INTO THURSDAY. MOST OF THE DAVID THANKS FOR JOINING US TONIGHT AT TEN… OUR TOP STORY TONIGHT — NEW PAYDAY LOAN REGULATIONS COULD BE ON THE WAY IN SPRINGFIELD. DAVID THE CITY COUNCIL IS WEIGHING TWO MEASURES THAT WOULD REQUIRE MORE TRANSPARENCY REGARDING THE INTEREST RATES THAT PEOPLE PAY. HEAHTER A GRASSROOTS GROUP RALLIED THE GATHERING OUTSIDE CITY HALL A FEW HOURS AGO… WHERE FAITH VOICES TALKED ABOUT THESE TWO PAYDAY LOAN ORDINANCES. (Frances Lin / Reporting): (Emily Bowen-Marler / Minister, Brentwood Christian Church): “We have tried for several years to address the exorbitant rates that predatory loans are charging people the really high interest rates and that hasn’t made any progress in the Missouri legislature. So some communities in Missouri are trying to address it by having these permitting fees, because it will discourage predatory lenders from setting up shop in Springfield.” EMILY BOWEN-MARLER WORKS WITH FAITH VOICES… AND IS ONE OF THE PEOPLE SUPPORTING ONE OF TWO PAY DAY LOAN ORDINANCES. (Marler): “It just gets people caught in the cycle of debt. Where they’re going to have to pay rollover fee after rollover fee after rollover fee and that’s what ends up making the interest rates so high.” (Kathy Lutz / bad experience with payday loans): “Shy of actually committing a crime, I would urge anybody to try any other avenue other than a payday loan.” KATHY LUTZ HAD A BAD EXPERIENCE WITH PAYDAY LOANS. (Lutz): “Talk to family. Talk to friends. Talk to your boss. See if they can advance you on your pay. Anything but getting in the payday loan trap. Because 412% interest which is what we paid on one of them is outrageous. It is outrageous and PROVIDE INFORMATION ABOUT THE TRUE COST OF THE LOAN. THE ONLY DIFFERENCE BETWEEN THEM IS A 5- THOUSAND DOLLAR PERMIT FEE PER COMPANY… WHICH BOTH MARLER AND LUTZ SAYS SHOULD BE NECESSARY… AS THE MONEY THESE LENDERS MAKE… DON’T EVEN STAY IN THE CITY. (Marler): “These stores that are providing these loans to people, the money doesn’t stay in Springfield. So it’s money that is being earned by Springfieldians and then leaving Springfield.” (Lutz): “Most of this is not staying in our city, it’s not even staying in our state.” SOME OTHER PEOPLE WHO SPOKE AT COUNCIL AGREE. (Collin Douglas / Minister, Christian Church Disciples of Christ): “Payday loans contribute to making poor people poor, by offering loans with hidden fees, and high interest with no expectation that the person taking the loan will be able to pay it back, but will instead take more money out to pay for that loan, simply contributing to a cycle which is never ending.” (Edna Smith / Commented at City Council): “The fee, to me, is a way to keep at least some of that money in our city rather than it going off to those multi-state corporations.”

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