Senator calls for changes to payday loan laws

Tuesday, February 7, 2012

JEFFERSON CITY, Mo. -- Missourians who take out payday loans could get more time to pay them off under legislation proposed by a state senator.

Payday loans are unsecured loans of $500 or less that must be paid off within 31 days. Sen. John Lamping, a St. Louis County Republican, told a Senate committee Monday that people should get at least 90 days to pay off those loans. The bill would also make it illegal for payday lenders to roll over or extend loans beyond 90 days.

Lamping's bill does not put any cap on the amount of interest lenders can charge. A ballot measure that could go before voters in November aims to limit certain loan interest rates to 36 percent. Lamping says a 36 percent cap would drive lenders out of business.

Payday loans bill is SB476



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