Breaking News

Missouri Senate endorses payday loan changes

Updated: 2014-02-19T18:16:58Z

The Associated Press

— The Missouri Senate has endorsed legislation that would prohibit borrowers from getting a renewal on payday loans.

State law allows borrowers to renew their loans six times. A payday loan can be no larger than $500 and can run only from 14 to 31 days.

The legislation was given first-round approval Wednesday by voice vote. It needs another affirmative vote to move to the state House.

Sponsoring Sen. Mike Cunningham, a Rogersville Republican, says his bill would prevent borrowers from getting into a trap by continuing to renew a loan and accumulate interest. His bill would give borrowers an extended time period to pay back a loan with no additional interest or fees.

Deal Saver Subscribe today!

Comments

The Kansas City Star is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

The Kansas City Star uses Facebook's commenting system. You need to log in with a Facebook account in order to comment. If you have questions about commenting with your Facebook account, click here