Council votes for moratorium on payday loan businesses

The council also received payment for Roots 'N Blues services.

By Trevor Eischen

Published Nov. 3, 2009

City Council voted Monday for a moratorium on payday loan businesses and received a check for services during the Roots ‘N Blues ‘N BBQ Festival.

Columbia has 21 payday loan businesses throughout the city.

Other cities have used zoning restrictions and limitations on local business licenses to limit the creation and spread of payday loan businesses.

Payday lenders have become a problem, especially in times of economic downturn when the availability to borrow money is abused. Fees from the payday businesses also export fees out of the town.

Fifth Ward Councilwoman Laura Nauser and Second Ward Councilman Jason Thornhill said the payday loan businesses are last resorts for many who cannot go through other institutions to obtain loans.

Fourth Ward Councilman Jerry Wade said he agreed with Nauser's agreement but voted for the moratorium.

"This has a huge impact on our very poorest," Wade said. "You're taking away the last step."

Planning and Development Director Tim Teddy said more research needs to be accumulated in order to pass any regulations pertaining to zoning and licensing restrictions for payday loan businesses in Columbia.

Teddy said many payday loan businesses target low-income and minority areas in which lending establishments receive more business.

City Counselor Fred Boeckmann said state laws for payday loans are not clear. He said if the state has not completely taken over a particular area of the law, the city could establish its own local laws.

Wade said he suggested the creation of a committee or group to invest further time and effort to discover the true impact of the businesses throughout the city.

"I think this information-gathering stage is very important," Third Ward Councilman Karl Skala said.

Mayor Darwin Hindman brought up looking at the aesthetics of the payday loan businesses.

"They have terrible signage," Hindman said. "It seems to me that one of the things we could do is single out the way to present themselves to the community."

The council also suggested payday loan businesses improve their appearances.

"Some of the ugliest things you see in town are the payday loans," Hindman said.

Hindman also said he knew of a not-for-profit community company in Oakland, Calif., where the community and banks supported the group for residents to look for loans.

The council spent two and a half hours debating the proposal put forth by the Columbia/Boone County Environment and Energy Commission to halt the installation of Well No. 16 in the McBaine Water Treatment Plant, located southwest of Columbia.

The council unanimously voted to halt the construction of the well and planned to decide on the well's placement and construction at a later date.

Thumper Entertainment, the company that organized the Roots ‘N Blues ‘N BBQ Festival in September, presented a $14,144.90 check to City Council for services paid in full.

In the pre-council meeting, Thumper Entertainment spokesman Richard King discussed the successes and things he learned from this year's festival.

Richard said having a football game during the same weekend of the festival distracted students and residents from the festival.

"We do think we got hurt on Friday with the Mizzou football telecast," King said.

Although admission dropped from previous years, King said numbers met the predictions, considering the recession.