A ballot initiative in Kansas City, MO, to be decided on April 8th, would impose a $1000 fee on payday loan stores. Dwight McQuade, a local payday lender, is interviewed in the article. From the piece:
McQuade told KMBC’s Martin Augustine that his customers are primarily middle class people who need a quick loan when the car breaks down or their children need medicine.
To paraphrase Mark Twain’s quote about Congress, it seems that businesspeople in Kansas City are not safe while the city council is in session.
Filed under: Media, Regulation, critics
I say TAX ‘EM!!! With the % they charge, they can damn sure afford it! Maybe some of that $$ can go to the buses, cuz I sure aint gonna vote for it! VOTE YES on this, no on the smoking ban, no on the buses! But….however u feel, please VOTE!!
3rd rock,
In Missouri, payday lenders charge a fee of around $15 per $100. Not outrageous when you consider the alternatives (bouncing checks, late bill payment fees, etc.)
The payday lending industry is already heavily regulated in Missouri. Taxing the business an additional $1000 does nothing to help consumers. It will go directly to paying the costs associated with the oversight of the new regulations.
In the end, as with all taxes, business will likely pass along the costs to their customers.
How exactly does this help the people who need cash between paychecks?