KANSAS CITY, Mo. (CN) – A payday loan company claims Kansas City’s law restricting short-term loan businesses is unconstitutional. Missouri Title Loans wants the ordinance enjoined for vagueness and other reasons, in Jackson County Circuit Court.
Kansas City adopted rules on short-term loan businesses in 2007. The restrictions include where the businesses can set up and how many can exist.
Missouri Title has been operating out of the same location since 1999, but is being forced to move through eminent domain, to make room for a transit stop for the Kansas City Area Transportation Authority.
Missouri Title claims the city failed to comply with Sunshine Law requests for maps showing where it could relocate under the ordinance, as required by The Uniform Relocation Assistance and Real Property Acquisition Act.
Missouri Title says it carries $216,000 in loans and provides $77,000 in new loans each month at interest rates between 12 and 25 percent. It is represented by Jerrick Irby of Stinson Morrison Hecker.