A decision by a Missouri city establishing a moratorium on new payday loan businesses has angered some politicians who think imposing limitations on a business that is already regulated is wrong.
The decision, which was approved by the City Council of Columbia on Tuesday, instituted a six-month moratorium on any new payday loan businesses within city limits to help gather information on the industry for further evaluation, the Columbia Missourian reported.
However, despite the vote’s results, some still opposed the creation of the moratorium. Second Ward Councilman Jason Thornhill and Fifth Ward Councilman Laura Nauser both objected to the moratorium.
Nauser told the Missourian that she was not comfortable with legislation because it investigated a legal business that already had state regulations in place governing it.
A number of payday loan lenders and politicians have come forward in recent weeks speaking out against legislation that could compromise the short term loan industry. Last month a House subcommittee approved the formation of the Consumer Financial Protection Agency, which would be responsible for governing over all consumer credit agencies.
