Payday Loans Coming To Local Banks

Posted 1 year ago

By Associated Press

payday advance
JEFFERSON CITY, Mo. (AP) — Missouri consumers may soon find it easier to turn to their local banks to get a short-term loan until their next paycheck.

Governor Jay Nixon signed legislation Friday that will double or triple the fees that Missouri-chartered banks can charge for short-term cash advances.

Bank officials have said that the state’s current maximum-allowed fees of $25 or 5 percent of a loan don’t provide enough financial incentive.

The bill raises the fee cap to $75 or 10 percent of a loan’s value.

The legislation could help banks compete with payday lenders, but it faced no opposition from the payday loan industry.

Some consumer advocates raised concerns about the bill, but only after it passed.


  • Delmar E Wehr

    How nuts is that, let’s suck everything we can out of you while me can.

    Current score: 0