Short term loans under the microscope

The short term loan industry is dealing with some scrutiny in Missouri thanks to a public forum sponsored by Women's Voices Raised for Social Justice, reports the St. Louis American. Some of the speakers making an appearance at the event include Rob Swearingen, staff attorney with Legal Services of Eastern Missouri; Fenny Dorsey, an organizer and activist who says she has struggled with short term loans; and Robin Acree, executive director of Grassroots Organizing in Mexico, Missouri. At the event, there will also be a discussion about the state's bill that proposes a 36 percent average interest rate cap on short term loans. Additionally, the bill would make it illegal to promote or facilitate short term loans in nursing homes. Missouri is one of the states currently taking on short term lending and other similar nontraditional credit companies. Consumer advocates argue that they want to obliterate these businesses because people get stuck in a cycle of debt. However, short term lenders are fighting back, explaining that these advocates are in fact hurting consumers and their credit scores because they are limiting their options. Short term lenders offer a lifeline when consumers have run out of options and can't pay for important expenses.