Members of the Springfield City Council are mulling changes to the rules for payday lenders operating in the city, and they’re looking to St. Louis as a potential example.
A city council committee met last week to address the issue of payday lending, and it heard testimony from Cara Spencer, a member of the St. Louis Board of Aldermen, which last year enacted new laws dealing with payday lending.
St. Louis requires payday lenders to post how much their interest is and what it will actually cost for a $100 loan over time, Spencer said.
Payday lenders in the city must also post options for alternative “non-predatory” loans. Additionally, the city can charge the lenders a $5,000 annual fee to cover the cost of compliance inspections. Kansas City allows a similar $1,000 fee.
Springfield council members said they hoped to hear from representatives of the payday lending industry at future meetings before making any decisions about regulatory changes in the city.
Read more: Springfield News-Leader