Legislature Will Not Overturn Payday Loan Veto
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Legislature Will Not Overturn Payday Loan Veto

Date: September 3, 2014
By: Katie Hynes
State Capitol Bureau
Links: SB 694Senate roll call, veto letter and the list of vetoed bills.

JEFFERSON CITY - A payday loans bill will not be brought to the floor for an override vote during the upcoming veto session.

The bill proposed additional requirements for payday lenders, restrictions on collection processes, and lowering interest rates for borrowers.

Sen. Mike Cunningham, R-Rogersville, sponsored the bill.

"It's a non-partisan issue, so it passed the House and Senate easily," Cunningham said.

The bill passed both chambers with bipartisan support, but it did not pass in the Senate with a two-thirds majority.

In order to overturn the veto, a two-thirds majority is needed in both chambers.

"There are some people who don't want any limits on [payday loans] and some people want it stricter," Cunningham said. "It was just a good compromise."

In his veto letter, Democratic Gov. Jay Nixon said the bill provides "false hope of reform" and does not help borrowers.

The bill did not include regulation for lessening the amount of debt borrowers can accumulate from payday lenders.

The bill "appears to be part of a coordinated effort by the payday loan industry to avoid more meaningful reform," Nixon said.

As a compromise with Democrats, Cunningham agreed to restrict payday lenders from charging more than 35 percent per $100 loaned.

For every $100 loaned, the borrower will owe 72 cents per week as interest.

The veto session begins Wednesday, Sept. 10.

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