Springfield City Council Passes Pay Day, Car Title Loan Resolution
A resolution passed by Springfield City Council asks the Consumer Financial Protection Bureau to address “potential deficiencies” in its proposed rule regarding pay day and car title loans.
Members of Southwest Missouri Faith Voices talked to council Monday night about the problems they say high interest loans cause people already living in poverty.
Council of Churches of the Ozarks director, Mark Struckhoff, said demand for food assistance at Crosslines has jumped 25 percent this summer.
"Our experience is, all too often we discover there's a pay day loan continuing to drain precious resources from these families that are already struggling to make it," he said.
According to Struckhoff, of the approximately 10,000 unduplicated people they serve each year, about 20 percent likely have pay day loans.
The resolution, sponsored by Councilman Mike Schilling, passed seven to one. Council Woman Kristi Fulnecky said, while the measure seemed like “a noble cause,” she was voting against it.
"Before I can make a recommendation to regulate private industry, I really need to hear both sides of the story, and so, since we don't have someone from the other side, I mean I feel like I need to hear two sides before I make a decision," she said.
The CFPB is taking public comment on the proposed rule concerning pay day and car title loans through October 7.