A Missouri House panel has adopted a measure that would eliminate renewals on payday loans and lower the amount of interest borrowers can currently charge.
Under current law, payday loans can be up to $500 and last from 14 to 31 days. Loans can be renewed up to six times.
In Missouri, a borrower cannot be charged more than $75 in interest and fees for a $100 loan. The measure endorsed by the House Financial Institutions Committee on Wednesday would lower that cap to $35.
The bill also allows a borrower to sign up for additional time to pay back a loan without penalty.
The Senate passed the measure earlier this year, but its version removed the cap on the amount of interest a borrower can be charged.
