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Missouri governor vetoes payday loan legislation

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JEFFERSON CITY, Mo. (AP) _ Legislation re-writing Missouri’s payday loan laws has been vetoed by Gov. Jay Nixon because he says it falls short of “true reform.”

Borrowers in Missouri currentl can renew a payday loan up to six times and can face interest rates as high as 75 percent of the loan’s original amount.

The bill vetoed Thursday would have ended loan renewals and capped fees and interest rates at 35 percent.

Supporters said the bill would provide greater protections to consumers.

But Nixon said it still would have allowed unreasonable interest rates and that people still could have been offered multiple loans by multiple lenders at the same time. He said the bill “appears to be part of a coordinated effort by the payday loan industry to avoid more meaningful reform.”

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Payday loan bill is SB694.

Online:

Legislature: http://www.moga.mo.gov

1 Comment

  • Ace Baily

    based on this story, the guv must like 75 % interest, and for borrowers to keep borrowing til they would never get out of debt. capping interest at 35% not enough for lenders? how much did the payday lenders line the guvs pockets with for the veto?

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