Voters to Decide On Payday Loan Regulation Fee

Friday, April 04, 2008

It's a big city issue flying under the radar. Question Two: new fees for the more than a hundred payday loan establishments in the city.

Question Two would charge Payday Loan spots an annual $1,000 fee that would be used to more closely regulate and monitor them.
   
Many in favor of the ordinance met Thursday at the Metropolitan Missionary Baptist Church to talk about the cycle of debt payday loans can often create.

Payday Loan owners like Dwight McQuade of Just Say Cash said payday loans are actually reasonable ways for people who have no other options to get quick cash.  Others said the problems come for those who can't pay the loan back after two weeks.

"They can go on the internet and pay 30 percent," McQuade said. "Or they can bounce a check and pay $35.  Or they can bounce a check and pay $17. How can we be bad guys?"

"The real question is will I be able to repay that in 14 days?  If I can't, that's where the rollovers start to occur.  That's where the ensnarling of debt begins.  So that's what we want to look out for," Bob Rastofer with the CCO said.

Question Two hasn't received much attention up to this point, so Rastofer said he really has no idea if voters will approve the $1,000 fee when they head to the polls next week.

Source: http://www.myfoxkc.com/myfox/pages/News/