Legislation involving so-called payday lenders isn’t aimed at shutting those businesses down, according to bill sponsor Charlie Davis (R-Webb City). He’s proposing this session to allow such businesses to renew the high interest loans twice, instead of the current six times.
“What we have seen in the past is somebody gets behind and they just keep getting further and further and further behind,” Davis tells Missourinet.
He is also proposing this legislative session to ban borrowers from having more than $750 in outstanding payday loans at one time.
“I am all for the payday loan stores. They fit a specific niche, somebody that just needs to borrow money for a short time period that banks will not loan money for,” says Davis. “On the other end of the spectrum, I have seen some payday loan stores take advantage of many individuals.”
Opponents of the legislation argue that short-term lending would be reduced, which would harm consumers.
“I think they’re important, but it (the legislation) prevents them from taking advantage of individuals. To me, my job is to protect my constituents,” says Davis.
His bill is HB 120. The Missouri legislature’s 2017 session begins Wednesday.