JEFFERSON CITY, MO (AP) – Missouri lawmakers have final approval to legislation that would eliminate renewals on payday loans and lower the interest lenders can charge.
The Senate voted to send the bill to Gov. Jay Nixon Thursday with a 26-4 vote. The House passed the same measure earlier this week.
Current law allows payday loans to be renewed up to six times and permits lenders to charge fees and interest up to 75 percent of the original loan amount. The legislation abolishes the renewals and reduces the cap on interest to 35 percent. Borrowers could also enroll in an extended payment plan without being charged additional fees on interest.
In Missouri, these small, unsecured loans can be up to $500 and last from 14 to 31 days.
Payday loans is SB694