New Protection from Payday Loans

The Missouri General Assembly just gave final approval to legislation that would eliminate renewals on small payday loans and would also lower the amount of fees and interest that these lenders charge. The new legislation will end the continual loan renewals that serve to hike fees causing borrowers to pay interest on interest. Under this new consumer protection there would be no renewals and interest rates would be capped at 35%.
This is a good first step. This legislation provides some consumer protection, but still does not solve the problem of small loan customers taking out numerous payday loans and title loans. It is our experience at Checkett & Pauly that these loans are very easy to get, yet difficult, and sometimes impossible, to repay. We hope that the state of Missouri continues in this direction and next year provides even greater protection for its citizens.