State Rep. Rory Ellinger Discusses Dangers of Payday Loans

State Representative Rory Ellinger is hosting a community conversation on payday lending, Thursday at 7:00pm at the , 7210 Olive Blvd. University City Patch asked him to respond to several questions about the issue of payday loans and his concerns regarding them in an e-mail interview.

What is your biggest concern about payday loans? Missouri allows the highest APR in the country which is why we have more lenders than almost every other state. Because our limits on APR are so weak, our citizens are getting trapped with debts, too often leading to bankruptcy, loss of cars and inability to pay rent, causing financial disaster.

Specifically in relation to University City, what is your concern relating to these payday loans? They target the most vulnerable citizens.

Are you hoping to help enact some sort of legislation concerning payday loans? Yes. I support HB132 which provides a 36% cap on APR. This provides Missouri citizens the same protection as military families, and is based on federal legislation sponsored by former U.S. Senator Jim Talent.

Why hold this community meeting, are constituents voicing concerns? Yes, citizens are concerned and are seeking reform.

Is there a payday loan establishment that is particularly egregious? The average APR is 444%. This is too high.

Is there anything you'd like to add/highlight that you think is of importance? I hope people will come out and let their voices be heard.

At Thursday's meeting, Rep. Mary Still, sponsor of HB 132 will take testimony from residents of the 72nd District. Joining a panel will be: Chris Krehmeyer, president/CEO, Beyond Housing, who will speak on new banking alternatives in the area; Rosalind Williams, Director of Planning and Development, Ferguson, and a U City resident; John Campbell, attorney with Simon Law Firm; and Darryl Luster, Jr., Community Outreach Manager, St. Louis Community Credit Union.