Missouri House passes payday loan changes

Apr 30, 2014

House floor at the Missouri Capitol
Credit File photo / KBIA

The Missouri House passed legislation that would eliminate renewals on payday loans and lower the amount of interest borrowers can currently charge.

Under current law, loans can be renewed up to six times and lenders can change up to $75 in fees for a $100 loan. In Missouri, payday loans can be up to $500 and last from 14 to 31 days.

The bill also allows a borrower to sign up for additional time to pay back a loan without penalty.

Supporters say the measure protects consumers from debt. But opponents argue it doesn't go far enough to curb irresponsible lending.

House members voted 112-39 on Tuesday to send the bill to the Senate, where a different version passed earlier. Lawmakers must agree on an identical measure by May 16.