Missouri House Committee Endorses Bill to Eliminate Payday Loan Rollovers, Lower Interest Cap

April 3, 2014
Associated Press 
payday lending news
A panel in the Missouri House of Representatives has approved new protections for payday loan users.

Borrowers in the state currently may be charged up to $75 in interest and fees per $100 lent, with loan amounts capped at $500; but the House bill would drop the ceiling on interest to no more than $35 on a $100 advance. In addition, the measure would eliminate loan renewals -- which are allowed up to six times under existing law -- and give borrowers extra time to repay a loan without penalty.

The state Senate has already passed its version of the bill, although it struck the language limiting how much interest payday customers can be charged.

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