Tuesday, September 18, 2007

Nixon Wants to Cap Rates on PayDay Loans

Missouri's Attorney General wants tougher restrictions on the state's payday loan industry.

In St. Louis today, 2008 candidate for Governor Jay Nixon said the industry is making a huge profit by exploiting Missouri's most vulnerable families.

Nixon is calling on state lawmakers to change what he calls some of the most lenient payday loans laws in the whole country. He wants to cap payday loan interest rates at 36 percent and eliminate the practice of renewing loans.

“Families living in poverty, who are simply trying to put food on the table, should not be slammed with an APR on average of over 422 percent. That’s outrageous. The families impacted by payday loans aren’t political insiders. They don’t have lobbyists in Jefferson City. They are our most vulnerable citizens, and that’s why it’s so important that we stand up and fight on their behalf. If Gov. Blunt is truly committed to lifting Missouri families out of poverty, he will join us in supporting legislation that significantly reforms the payday loan industry," Nixon said today.

Missouri families paid 317 million dollars in fees and interest in 2005 alone. That's second in actual dollars only to California.

No comments: