What is Payday Lending?

A short-term loan expected to be repaid before the borrower's next payday. Frequently, the borrower collateralizes a payday loan by presenting a postdated check for the amount of the loan (plus interest). The lender simply deposits the check on the agreed-upon date. Interest rates on payday loans are notoriously high.  https://financial-dictionary.thefreedictionary.com/Payday+lending

Is Payday Lending harmful? Why do we need this Ordinance?
Payday lenders target those who are most vulnerable economically (especially single parents). The business model is based on keeping the customer in debt based on fees and exceptionally high-interest rates (up to 1950% in Missouri!). This ordinance will promote and protect the public health, safety, and welfare of the City’s citizens; and the public good of maintaining a viable tax base to fund essential services.

What businesses will be impacted by this Ordinance?

Any business that:
(a) engages in the business of providing money to customers on a temporary basis, wherein such loans are secured by post-dated check, paycheck, or car title,

(b) provides an extension of credit made at an Annual Percentage Rate (as defined in accordance with federal law) in excess of 45%

How many Payday Lenders are already in Liberty?  There are currently 7 Payday Lenders in Liberty. As a comparison, there are 11 full-service banks in Liberty.  

What will happen to the Payday Lenders already in Liberty? Current lenders are “grandfathered in” meaning they may remain in business. They will be subject to the stipulations of the new ordinance.

What will this ordinance do that the existing ordinance does not do?

  • Limits payday lenders to one establishment per 15,000 residents. (This is similar to one way Independence is addressing the situation.)

  • Retains the zoning limit of 200’ from schools, churches, parks, and residences.

  • Retains the 5,280’ limit from a new PayDay business locating near an existing PayDay business.

  • Adds a $5000 annual fee to help the City better enforce the ordinance.


What can i do to help Liberty have this ordinance?   

  • Sign the petition.   

  • Ask our Mayor and your City Councilperson to support this ordinance.

  • When we vote in the coming months on the $5000 fee -- show up to vote YES.

What are some of the current alternatives to Payday Lending in Liberty?  Make a list --- Hillcrest, Second Hope, InAsMuch, Pleasant Valley Auto Repair.

What can i do to help Liberty have this ordinance?   

  • Sign the petition.   

  • Ask our Mayor and your City Councilperson to support this ordinance.

  • When we vote in the coming months on the $5000 fee -- show up to vote YES.

 Join The Campaign For Economic dignity

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