JEFFERSON CITY —As the sponsor of legislation that will change certain guidelines within the payday loan industry, Sen. Mike Cunningham, R-Rogersville, commends the final passage of Senate Bill 694.
“This bill will completely change how the payday loan industry does business within the State of Missouri,” Sen. Cunningham said.
Payday lending businesses will see a change in yearly fees from $300 to $500, and will also be asked to place signs that state the amount of interest and fees consumers are being charged per $100 borrowed.
This bill will help protect payday loan consumers by stating loans cannot be extended or rolled over into another loan, and more fees and charges cannot be added. However, consumers can apply for, at the most, a 120-day extension of the loan through an extended payment plan (EPP). Once an EPP is started, there can be no more fees or charges added to the loan from the lender and another EPP cannot be started for one year. The consumer is allowed one loan at a time, with a 24 hour waiting period after payment in full, before applying for another loan.
“This legislation is going to help protect consumers,” Sen. Cunningham said. “It can be so easy for consumers to get trapped into a cycle of debt, and this legislation works to ensure that is not happening, while still calling for personal accountability.”
The bill now moves to the House for its consideration.
For more information on Senate Bill 694 or to see a complete list of Sen. Cunningham’s legislation visit www.senate.mo.gov/Cunningham. |
