Mo. considers ban on payday loan businesses collecting utility bills

An issue that has simmered for years erupted recently at a meeting hosted by the Missouri Public Service Commission as it prepares to make a recommendation next month on whether to ban payday loan companies from collecting utility bills.

Many utility providers allow payday lenders to accept utility payments, defending it as a convenient option for customers. Critics say it encourages cash-strapped customers to take on high-interest debt, according to the Kansas City Star.

Most utility customers pay their bills online or by mail, but some who don’t have bank accounts need to pay in cash. The commission is weighing arguments on both sides as it determines whether it should draft a statewide ban on the payday loan bill-collection practice.  

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