ST. LOUIS, Mo. (First Alert 4) - This week, St. Louis City introduced a new plan to reduce the number of expired license plates in the area.
A temporary tag loan program was announced Thursday to help drivers pay off their vehicle’s property taxes, tag fees, and insurance. It’s one of the first of its kind to use $315,479 of the city’s Public Safety Budget for the revolving fund.
“Not everyone can afford to pay taxes,” resident Charie Motley said. “People don’t have money. I see a lot of temp tags.”
According to the mayor’s office, the city does not have a say in the loan agreement. That responsibility falls on St. Louis not-for-profit and loan provider, Justine PETERSEN.
A 5% interest fee will only apply to past-due payments.
“What is the outcome if the person can’t comply in paying their loan? Will they garnish wages for repayment if they can’t repay the loan? Will they lose their privilege to drive?” Asked city resident Andrea Bohannon.
“If it’s a fair loan for people that are struggling financially, I think it’s a good thing,” Motley said.
Per Justine PETERSEN’s website, they specialize in credit counseling and assisting low-income residents.
However, it also says if borrowers fall behind on payments there can be penalties.
“We will report information concerning your performance under the loan agreement to the credit reporting agencies. Late payments, missed payments, or other defaults on your account may be reflected in your credit report.”
According to the mayor’s office, only residents who have an income of less than 80% of the area’s median income are eligible to apply.
“I think it’s good to offer a pathway for legitimacy in driving in St. Louis. My concern would be is the loan from the city a predatory loan which might have unfavorable terms to the person who is looking for that legit pathway,” Bohannon said.
‘Life is hard for a lot of people,” Motley said. “So, I think it prevents people from riding around illegally. "
In 2023, Missouri passed a law allowing car dealerships to collect sales tax upon purchase.
The new temporary tag loan program will start accepting applicants this fall.
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Will drivers be able to afford the new St. Louis temp tag loan program? - First Alert 4
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