Posted: Jul 10, 2014 12:08 PM by The Associated Press
Updated: Jul 10, 2014 2:34 PM
JEFFERSON CITY (AP) - Legislation re-writing Missouri's payday loan laws has been vetoed by Gov. Jay Nixon because he says it falls short of "true reform."
Borrowers in Missouri currently can renew a payday loan up to six times and can face interest rates as high as 75 percent of the loan's original amount.
The bill vetoed Thursday would have ended loan renewals and capped fees and interest rate as 35 percent.
Supporters said the bill would provide greater protections to consumers.
But Nixon said it still would have allowed unreasonable interest rates and that people still could have been offered multiple loans by multiple lenders at the same time. He said the bill "appears to be part of a coordinated effort by the payday loan industry to avoid more meaningful reform."
Payday loan bill is SB694.