Nixon Vetoes Payday Lending Legislation

Gov. Jay Nixon spoke to a crowd during a Department of Conservation commission meeting at the Tiger Hotel in Columbia on July 8, 2014. Nixon announced the veto of two bills that would reclassify captive deer as livestock, which would transfer oversight of captive population to the state Department of Agriculture. | Austin Huguelet/Missouri Business Alert
Gov. Jay Nixon vetoed  legislation aimed at the payday loan industry, dismissing it as an attempt to avoid “meaningful reform.” | Austin Huguelet/Missouri Business Alert

Gov. Jay Nixon vetoed legislation aimed at restricting payday loans, saying it “fails to protect consumers and fails to prevent the cycle of debt that payday lending perpetuates.” Instead, he says the bill, “appears to be part of a coordinated effort by the payday loan industry to avoid more meaningful reform.”

The bill would prevent consumers from taking out new short-term loans, which can happen as many as five times under current law, with interest continuing to accumulate. The bill would also cap interest fees on loans at $35 for every $100 in principal. The current cap is 75 percent of the original principal.

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