Missouri considers ban on payday loan outlets collecting utility bills

More than 9,000 suits are filed annually by payday loan companies against customers in Missouri. | Photo courtesy of Creative Commons
The Missouri PSC will consider banning payday lenders from collecting utility payments from customers. | Courtesy of Creative Commons

The Missouri Public Service Commission staff will recommend next month whether to draft a rule that stops allowing payday lenders to collect utility bill payments from customers.

The dispute has simmered for years. Critics say it’s ridiculous to collect utility payments at places they say provide loans at sky-high rates and target cash-strapped consumers. Customers pay off their utility bills but may find it too convenient to take out a loan to do so.

Utilities defend it as the best and most convenient option for some customers.

Read more from the Kansas City Star

Tags:, , , ,

Leave a Reply

Have you heard?

Missouri Business Alert is participating in CoMoGives2019!

Find out how we plan to use your gift to enhance training and programming for our students