Columbia considers regulations on payday loan companies

COLUMBIA, Mo. (AP) - Columbia is looking into imposing heavier regulations on payday lenders.

The Columbia Missourian (https://bit.ly/2sZB7L3 ) reports that an ordinance is being drafted. Payday loan companies offer small loans, usually less than $1,000, that borrowers usually promise to pay with their next paychecks. The loans are predominantly taken out by low-income residents. Critics say the loans are predatory, while lenders say they are filling a need.

The state of Missouri has lax regulations compared to other states. St. Louis and Kansas City are among the cities that have placed their own rules on the companies.

Regulations being considered in Columbia include requiring lenders to post in 24-point bold font the annual percentage rate of interest if the loan is rolled over six times, as well as any fees that would be charged.

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Information from: Columbia Missourian, https://www.columbiamissourian.com