Missouri House passes bill that would tighten regulations on payday loans
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Missouri House passes bill that would tighten regulations on payday loans

Date: April 19, 2011
By: Meghann Mollerus
State Capitol Bureau
Links: HB 656

Intro: 
The Missouri House sent a bill to the Senate that would more closely regulate payday loans.
RunTime:  0:47
OutCue:  SOC

Wrap: The bill would cut the number of loan renewals a person can get from six to three.

Consumers also would not be allowed to get another loan before waiting one business day since the last was paid off.

Jefferson County Republican Representative John McCaherty addressed questions about whether the bill really would protect consumers.

Actuality:  MCCAH.WAV
Run Time:  00:15
Description: "If we really want people to understand, if we want them to understand the laws, the fees they're going to pay, if we want them to understand the rules...then vote for the bill, pass the bill, and if it's not as much reform as you'd like, then introduce a new bill."

Opponents say the annual percentage rates in this bill are too high, and allow pay day loan offices to take advantage of consumers who do not understand the loan process.

From the Missouri State Capitol, I'm Meghann Mollerus.

Intro: 
The House sent a bill to the Senate that would tighten regulations on payday loans and increase loan awareness for consumers.
RunTime:  0:48
OutCue:  SOC

Wrap: The bill faced opposition by those who say it helps payday loan companies stay in business by allowing them to have high annual percentage rates and take advantage of consumers.

Columbia Democratic Representative Mary Still says the current bill does nothing to aid those receiving the loans.

Actuality:  STILL6.WAV
Run Time:  00:13
Description: "The only change in this bill is a change which helps the industry, protects the industry and hurts the consumer."

Supporters of the bill disagree, saying the bill helps consumers by providing a day-long "cooling off period" in between loans.

The bill also cuts loan renewals from six to three and would require loan offices to post the price for loans per $100.

From the Missouri State Capitol, I'm Meghann Mollerus.

Intro: 
The Missouri House sent a bill to the Senate that would cut how many times consumers can receive payday loans.
RunTime:  0:45
OutCue:  SOC

Wrap: The bill also would restrict loan renewals from six to three and cap the annual percentage rate at 1564 percent.

Republican Southern Missouri Representative Don Wells says these restrictions help consumers prevent impulsive spending.

Actuality:  WELLS3.WAV
Run Time:  00:15
Description: "In this bill, there is a one day cooling off period. You cannot go in, pay off a loan, and immediately get another loan. This is a person's time to assess whether they really need another loan...consumer protection, again."

Opponents of the bill say the interest rates under the bill are too high and protect the industry while hurting the consumer.

A similar bill proposed by an opponent earlier in the session would have capped the APR to a low 36 percent.

From the Missouri State Capitol, I'm Meghann Mollerus.


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