The Center for Consumer Freedom is speaking out in opposition to the recent decision by a Missouri city to impose a moratorium on licensing new payday loan businesses within its borders.
On November 2 the City Council of Columbia, Missouri voted in favor of stopping the addition of any new payday loan businesses to the 21 state-licensed lenders already present in the town. The council justified its decision by saying the city needed to examine the businesses pros and cons and “decide what would be best for the community,” according to councilman Jerry Wade.
However, in a letter to the editor published this week in the Columbia Daily Tribune – which had reported on the City Council’s decision – TCCF director of communications Sarah Longwell criticized the moratorium as interfering with citizens’ personal finances.
“Eliminating these services will deprive the city’s neediest residents of valuable financial tools, ultimately causing them to pay more for their financial services,” Longwell wrote. “Borrowers are best served when they have more choices to pick from, not fewer – and an economic downturn is no time to raise costs for low-income workers.”
She added that by limiting the payday loan business, the City Council could potentially push consumers in need of immediate funding to “less desirable” alternatives as well.
