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Governor Nixon Vetoes PayDay Loan Bill

The governor said the bill did not offer true reform.
(JEFFERSON CITY) Governor Jay Nixon vetoed a bill Thursday that would have changed the way payday loans work in the state.

The governor said the bill did not offer true reform.

"Payday lending often perpetuates an endless cycle of debt for consumers who can least afford it, and this bill fails to protect Missourians from being caught in this downward spiral," Gov. Nixon said. "Missourians want meaningful payday lending reform, not a sham effort at reform that allows such predatory practices to continue. I encourage the General Assembly to approach this problem again next year, and present me with a bill that delivers true reform."

The bill would have prevented borrowers from getting a new loan until their current loans are paid off.

Current law allows borrowers to renew their loans up to six times.

Governor Nixon said the bill would still allow lenders to charge 912.5 percent for a 14-day loan and that borrowers could still be offered multiple loans by multiple lenders.

"Missourians want meaningful payday lending reform, not a sham effort at reform that allows such predatory practices to continue. I encourage the General Assembly to approach this problem again next year, and present me with a bill that delivers true reform."
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