Thursday, January 4, 2007

A City Council committee moved Wednesday to keep new payday loan businesses from opening in Kansas City.

The Kansas City Star reported that the Finance Committee voted for a moratorium on business and occupation licenses until June 30, while a task force investigates industry practices. The moratorium would apply to payday, title and signature loan businesses.

The full council is to consider the measure today. It would not affect regular and faxless payday advance businesses already open.

Mayor Pro Tem Alvin Brooks said the moratorium was needed to keep payday loan businesses from moving in from other cities passing similar measures.

Gladstone in October approved a moratorium on instant payday loans.

“Other communities on both sides of the state line are considering this,” Brooks said. “We want to certainly support small business, but we have a responsibility to look out for the safety of our citizens.”

Judy Hadley, city revenue commissioner who will lead the task force, said it would look into whether the fast cash loan businesses focused on poor areas and whether they followed state and federal laws.

Legislation that would further restrict predatory lending has been introduced in the Missouri General Assembly. Cash advance businesses have drawn attention as politicians have accused them of victimizing customers.

This entry was posted on Thursday, January 4th, 2007 at 4:02 pm and is filed under Missouri.