City Court Filing Defends Ordinance; Business Says It Differs From Payday Lenders
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The town of Liberty contends it offers the ability to control companies that practice high-interest financing, regardless of if those continuing companies claim to stay a course of loan providers protected by state legislation.
The Northland city defended a recently enacted ordinance as a вЂњvalid and lawful exercise,вЂќ and asked that a judge dismiss a lawsuit brought by two installment lending companies in a recent legal filing.
Liberty this past year became the most recent of several Missouri urban centers to pass an ordinance managing high-interest loan providers, whom run under one of many nationвЂ™s most permissive collection of state regulations.
The ordinance that is local a high-interest loan provider as a small business that loans money at a yearly portion rate of 45% or maybe more.
After voters passed the ordinance, which calls for a yearly $5,000 license cost and enacts zoning restrictions, the town informed seven organizations that when they meet with the conditions laid away in the ordinance they have to submit an application for a license.
Five organizations applied and paid the cost.