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.