Tuesday, September 12, 2006
Contact: Spence Jackson, 573-751-0290
Blunt Takes Payday Loan Operations out of Nursing Homes
JEFFERSON CITY–Ending a long standing practice started by previous administrations, nursing home operators will no longer be allowed to operate on-site payday loan operations that lend money to the nursing homes’ employees, Gov. Matt Blunt announced today. Currently about 60 nursing homes around the state operate payday loans in their facilities.
“Payday loans typically charge exorbitant amounts in interest for those who borrow from them,” Blunt said. “Employers should not be making money off the wages they pay their hardworking long-term care facility employees.”
Blunt said long-term care rules allow only activities necessary to or directly related to the administration of the facility to operate within the facility.
“Payday loans for employees are in no way necessary to or directly related to the administration of the facility,” Blunt said. “We are stopping this potential financial abuse of hardworking long-term care workers in Missouri.”
The existing onsite payday loan operations would have to be renewed beginning the end of August. The Missouri Department of Health and Senior Services will deny all the renewal requests as well as any future requests.
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