Springfield voters have agreed to impose a 5,000 dollar annual fee on short-term lending businesses, commonly referred to as payday lenders.
Critics of "payday," or "title" loans say they prey on the poor and reinforce the cycle of poverty. A task force recommended the annual fee to Springfield City Council earlier.
The issue was posed to Springfield voters as "Question 1" on Tuesday, and nearly 57 percent said "yes" to imposing the fee on payday lenders.
According to the new ordinance, the permit fees are intended to defray the costs of investigating and processing the applications for the permits. They’re also meant to help pay for enforcement efforts required by the Short Term Lending Code and costs to the public for the economic damage caused by short-term loans.
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