Future Cloudy on Payday Loan Legislation

August 3, 2014
St. Joseph News-Press (MO) 
payday lending news
Missouri Gov. Jay Nixon recently vetoed a payday loan reform bill, sponsored by Sen. Mike Cunningham (R-Rogersville), that would place more regulations on payday lenders and stop rollover loans. Nixon, however, did not believe the proposal went far enough to hold payday lenders responsible, saying he vetoed the measure because it provided false hope of change within the industry.

The state of Missouri has more payday loan locations than McDonald’s and Starbucks combined, the faith-based group Communities Creating Opportunity (CCO) reports. CCO labeled the vetoed bill a “sham reform.” John Miller, a local businessman and volunteer with CCO, pointed out that the bill capped the rollover rate at 900 percent.

Cunningham does not know what comes next for payday loans in the state, but he said the Senate may try to get enough votes to override the governor’s veto. A decision is expected to be made before the annual veto session in September.

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