AFSA Effort Shows Results in Missouri
On May 7 the American Financial Services Association sent a letter to the town of Springfield, Missouri, regarding its new ordinance imposing fees, permits, etc. on “short-term loan establishments.”
The letter, co-signed by Tom Hudgins on behalf of the Missouri Installment Lenders Association (MILA), explains that AFSA members are not short-term loan establishments despite inclusion by the ordinance’s definition. Moreover, there is an existing Missouri law that preempts local governments from imposing such laws on traditional installment lenders.
As a result of the letter, AFSA received a call from the city, noting that Springfield has no intention of applying this ordinance to traditional installment lenders. The working group established to develop policies on the matter reported back to the council and explained that installment lending is different than the type of lending Springfield is attempting to target with its ordinance.
AFSA and the MILA noted that it would still be best to fix the language to prevent any future reinterpretation of the law. We will keep members updated as this issue moves forward.
May 12th, 2020 by Dan Bucherer
