Missourians hope to vote in November on a proposal to limit the interest rate on payday, car title, and installment loans. If successful, Missouri will be the fourth state in four years to approve a reduction of interest rates on payday loans from 400% annual interest to 36% or less. The other states include Montana, Arizona, and Ohio, and in each of them voters approved an end to 400% interest rates by a two-to-one margin.
Missourians moved one-step closer to their goal on Sunday, May 6, by submitting hundreds of thousands of signatures from across the state in support of reining in high-cost loans. Payday loans in Missouri carry an average of 444% annual interest rates. A diverse group of clergy, community leaders, and everyday Missourians gathered the signatures largely through all-volunteer efforts, also gathering signatures to raise the state's minimum wage.
Assuming the Secretary of State certifies the signatures, and Missouri voters approve the initiative, the state will join 17 others and the District of Columbia that have limited payday and other predatory lending. Congress also has capped payday lending to active military members and their families to 36 percent.
Photos of the signature gathering effort available here: http://ow.ly/aKaim.
For more information: Kathleen Day at (202) 349-1871 or kathleen.day@responsiblelending.org; or Cesar Castro at (919) 313-8537 or cesar.castro@responsiblelending.org.