JEFFERSON CITY, Mo. (AP) — Missouri lawmakers are considering an overhaul of the state's payday loan industry that would give borrowers more time to pay back a loan.
The legislation passed by the Missouri Senate last week also would stop borrowers from renewing a loan and would remove a cap on the amount of fees and interest lenders can charge.
Under current law, payday loans can be up to $500 and last from 14 to 31 days. Loans can also be renewed up to six times.
Sponsoring Representative Mike Cunningham of Rogersville says the cap is not necessary since loans can't be renewed, and that market forces would set the interest rates. The measure's opponents said the bill was a step in the right direction, but doesn't go far enough.