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Short Term Loan Establishments In Springfield Will Be Required To Have An Annual Permit

Springfield City Hall
Chloe O'Neill
Springfield City Hall
Springfield City Hall
Credit Chloe O'Neill
Springfield City Hall

Springfield City Council unanimously passed a bill Monday night making it mandatory for short term loan establishments, like payday lenders, to acquire an annual permit in order to operate legally.

Those are defined by the city as establishments that engage in the business of providing money to customers on a temporary basis through loans that are secured by post-dated check, paycheck or car title. 

The permit for the short-term loan businesses will cost $5,000, but that fee has to be approved by voters in August.

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 mean 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.

Faith groups have long pushed for such an ordinance, arguing that unregulated short-term loan establishments perpetuate the cycle of poverty.

Copyright 2021 KSMU. To see more, visit KSMU.

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Michele Skalicky has worked at KSMU since the station occupied the old white house at National and Grand. She enjoys working on both the announcing side and in news and has been the recipient of statewide and national awards for news reporting. She likes to tell stories that make a difference. Michele enjoys outdoor activities, including hiking, camping and leisurely kayaking.
As the Journalist-in-Residence at Missouri State University, Jennifer teaches undergraduate and graduate students, oversees a semester-long, team reporting project, and contributes weekly stories to KSMU Radio in the area of public affairs journalism.