PSC wants to end utility payments at payday loan offices

More than 9,000 suits are filed annually by payday loan companies against customers in Missouri. | Photo courtesy of Creative Commons
The Missouri Public Service Commission expressed support for banning utilities from using payday lenders as authorized payment centers. | Photo courtesy of Creative Commons

A majority of the Missouri Public Service Commission expressed support for a new rule that would stop utilities from using payday lenders as locations authorized to accept bill payments. Consumer advocates have railed against the industry for years because of high interest rates and the fees and penalties its short-term loans levy on borrowers in mostly poor neighborhoods.

The Missouri Public Counsel’s office had proposed restrictions on the use of payday lenders as payment stations for utilities five years ago, citing concern that utility customers might be lured into a loan while paying their bill.

Read more from the St. Louis Post-Dispatch


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