STARKVILLE — The City of Starkville will not issue any permits for new payday lenders for at least a year, according to The Associated Press.
The board of aldermen made the decision Jan. 19 after local officials said 20 such lenders in the city are enough.
The moratorium will be in place at least until aldermen adopt a new comprehensive plan.
Payday lenders offer quick cash advances — for a fee — that customers must repay once they receive their next paycheck. Borrowers who cannot repay the loan by the next payday often “roll over” the loan repeatedly, leading to more charges that can quickly add up and lead to a cycle of debt.