payday loans

A payday loan shop on Natural Bridge Avenue east of Union Boulevard. The high interest rate of payday loans can leave people on the hook for paying more in interest than the original loan.
File photo |Camille Phillips | St. Louis Public Radio

The St. Louis Board of Aldermen on Friday gave initial approval to legislation that would put new restrictions on payday lenders in the city.

The full Board of Aldermen is expected to take up the stadium funding plan next Tuesday.
Jason Rosenbaum I St. Louis Public Radio | file photo

St. Louis aldermen want to place stricter regulations on “payday loan” establishments, part of a broader movement to combat institutions that provide short-term cash to primarily low-income individuals.

Payday loan companies tend to provide small, short-term loans to people. Some critics of the institutions say that they place high interest rates on the loans, which send low-income people who use the service into a cycle of debt.