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Springfield voters approve fees for short-term lending establishments

Payday Loans businesses could face a $5,000 annual permit fee.
Payday Loans businesses could face a $5,000 annual permit fee.(KY3)
Published: Aug. 4, 2020 at 10:47 PM CDT
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SPRINGFIELD, Mo. (KY3) - Springfield voters approve a measure to impose an annual fee for short-term lenders.

As of late Tuesday night, the measure was passed with a vote of nearly 57%.

The ballot measure calls for an annual fee for payday and car title lenders and had been approved for election by the Springfield City Council in May. Advocates say the effort comes in an effort to curb high-interest-rate lending.

Under the measure, a permit would cost $5,000 a year, or $2,500 for short-term lenders who open up more than halfway through the year.

According to the ordinance, businesses that did not comply could face/could have faced fines ranging between $100 and $500, or up to 180 days in jail.

St. Louis charges a similar fee of $5,000. The fee is as low as a thousand dollars in Kansas City.

Copyright 2020 KY3. All rights reserved.

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