payday loan

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Efforts to bar Missouri payday lenders from accepting payments for utility bills have been dealt a setback.

Opponents of the practice say utility customers who pay their bills at payday lending stores are vulnerable to taking out high-interest loans at the same time.

The opponents want Missouri's Public Service Commission to ban the practice. The PSC regulates utilities.

But The Kansas City Star reports the PSC staff has concluded there's no evidence of consumers being harmed by paying utility bills at payday loan shops.

By Gregory F. Maxwell / Wikimedia commons

Missouri regulators are again considering whether to stop payday lenders from collecting utility bill payments from their customers.

By Gregory F. Maxwell / Wikimedia commons

Legislation rewriting Missouri's payday loan laws has been vetoed by Gov. Jay Nixon because he says it falls short of "true reform."

Borrowers in Missouri currently can renew a payday loan up to six times and can face interest rates as high as 75 percent of the loan's original amount.

missouri house floor
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.

missouri house floor
File photo / KBIA

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.

money
File Photo / Flickr

Missouri lawmakers are considering an overhaul of the state's payday loan industry that would give borrowers more time to pay back a loan.

Missouri Capitol
File Photo / KBIA

Missouri Gov. Jay Nixon has vetoed legislation on fees for certain types of loans and on voting by elected officials during public meetings.

The two bills were among four vetoed by Nixon on Tuesday.

Nixon criticized the measure that would have raised the fees that lenders could charge for payday, title and consumer installment loans. The Democratic governor said the bill would have helped payday lenders increase their profits at the expense of people struggling with debt.

File / KBIA

Supporters of raising Missouri's minimum wage and limiting payday loans have submitted petitions to get the measures on the November ballot.