New measure will reform payday loan industry
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New measure will reform payday loan industry

Date: February 3, 2014
By: Jeffrey Militzer
State Capitol Bureau
Links: SB 694

Intro: 
Lawmakers discussed tougher protections for payday loan consumers has been heard before a senate financial committee Monday.
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Wrap: A senate committee heard testimony about a measure that would change the way payday loan companies do business in Missouri.

Senator Mike Cunningham, a Republican from southern Missouri, says the measure he is sponsoring would completely change the payday loan business in Missouri.

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Description: "Some of the people in the industry like it, some people don't like it, but I think it's something that needs to be done."

The measure would prevent consumers from extending or renewing their initial loan, meaning the first loan would have to be paid off before taking out another loan.

Unless a consumer pays off their first loan, they would not be able to reborrow.

Reporting from the state Capitol, I'm Jeffrey Militzer.

Intro: 
Legislative committee heard a measure that would affect the way payday loan customers do business.
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Wrap: A measure to change the law relating to payday loans could affect payday loan consumers.

Senator Mike Cunningham, a Republican from southern Missouri, spoke to a senate finance committee about the bill during a hearing Monday.

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Description: "Current law permits renewals or rollovers at six times, and this new law will allow only the initial loan and no rollovers."

Renewals and rollovers allow lenders to continue loaning to customers who may have fallen behind by relending the money borrowed with a bit more interest.

Reporting from the state Capitol, I'm Jeffrey Militzer.


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