A real reform would be to get rid of the payday lending industry altogether, but since that is unlikely to happen, the next best solution would be to cap loan interest rates at 36%, which is still insanely high. . There should also be a statewide database, a limit to the number of payday loans a borrower can take out, and if a borrower cannot repay the loan, then they should take advice. in credit. The payday loan fee should be limited to 10% of the loan amount. The payday lender should be limited in what it can do to get past due payments from customers.
However, I don’t see any of this happening because our weak ethics laws allow special interest groups to make unlimited campaign contributions. Previous attempts to legislate on this issue have failed.
As Treasurer, I am committed to helping St. Louis residents build financial skills and learn to manage their money with confidence so they can avoid using payday loans. Long-term planning for our financial future will in turn leave a legacy for our children to be protected for years to come.
Tishaura O. Jones, a Democrat, is treasurer of the city of St. Louis.
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