Cities, Lenders Resume Battle Over High-Interest Loans

Cities, Lenders Resume Battle Over High-Interest Loans

Whenever Liberty did exactly that, installment lenders hit straight right right right back on two fronts — in court plus in the Missouri legislature.

World recognition Corp. and Tower Loan sued the town in March, adhering to a squabble over licenses.

The town contended that, considering that the continuing companies loan money at interest levels surpassing 45%, they truly are susceptible to the ordinance and desire a license to work.

Lenders stated these are generally protected by an area of state legislation that claims towns and cities and regional governments cannot “create disincentives for just about any conventional installment loan loan provider from participating in lending…”

The $5,000 license cost as well as other ordinance needs qualify as disincentives, the lawsuit states.

“My customers are categorized as that statute,” stated Marc Ellinger, a Jefferson City attorney who’s representing World recognition Corp. and Tower Loan. “The state states governments that are local do just about anything to discriminate against old-fashioned installment loan providers.”

Continue reading “Cities, Lenders Resume Battle Over High-Interest Loans”