JEFFERSON CITY, MO. (KMOX) — There’s more restraints on the way for payday loan companies in Missouri, but one lawmaker is saying way a minute.
Committee Chair Don Wells warned legislators not to get too restrictive and in effectively shut down the industry.
“I’m not talking about just the poorest of the poor,” Wells said. “There are school teachers that use them, state workers anyone who has too much month left at the end of the money.”
The latest bill would still let the companies charge high rates, but would require them to post the price of loans per 100 dollars.
The bill’s sponsor is Representative Ellen Brandom. She recognizes some payday loan companies will loose money.
“There is no question that this will have some detrimental affect to some pay day loan companies,” expressed Brandom, but she says something has to be done.
The current average annual percentage rate for a payday loan in Missouri according to the State’s Department of Finance is more than 400 percent.
Columbia Representative Mary Still sponsored a similar bill that would cut the rate charged by payday loan companies to 36-percent.
But, in the end, the House Financial Institutions Committee opted for a less restrictive bill that would let them charge roughly 60-percent.
The measure now goes to the House Rules Committee.
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