Payday Loans Hurt Missouri Families

Springfield News-Leader
April 10, 2010
Norr, Charlie

Missouri state Rep. Charlie Norr counters a payday loan supporter by presenting facts about the negative impact the payday lending industry has had on the state. The Democratic lawmaker cites the Better Business Bureau as reporting that Missouri law allows for a 1,950 percent interest rate on a payday loan, while the average APR for such a loan is more than 430 percent. While supporters claim the product can help families out of tough spots, Norr asserts that the loans only increase burdens by making borrowers subject to late fees from the lenders and insufficient-fund fees from the bank. That is because payday loans are secured either by the borrower's payday check or access to their debit account. He adds that studies show that people with payday loan fees are more prone to insufficient fund fees, bank fees, and late rental payments. Norr believes his concerns echo those of the state's residents; and he urges other elected officials to heed the cries of the people by sending payday loan reform legislation, H.B. 2116, to vote on the House floor.
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